F1 Q A K @ 2 F2 W S Which of the following is a reason that the Federal reserve failed to intervene to stabilize the banking system in the early 1930s? O A. The Fed wanted to purge speculative excess, believing that it was necessary for the price level to fall and weak banks and weak firms to fail before a B. The Fed was reluctant to rescue insolvent banks, believing that doing so would discourage risky behavior by bank managers (the moral hazard probler C. Power within the Federal Reserve was much more unified than today, making it more difficult for the Fed to act. D. The Fed failed to understand that with deflation, low nominal interest rates implied low real interest rates. #3 80 F3 E D 4 Q F4 R F 45 % F5 T G 6 F6 Y 7 H A F7 U OO 8 J DII F8 9 K F9 0 0 L F10 P Time Re