Question: The monetary base increased by 20 percent during the contraction of 929-1933, but the money supply fell by 25 percent. Explain why and how this

The monetary base increased by 20 percent during the contraction of

The monetary base increased by 20 percent during the contraction of 929-1933, but the money supply fell by 25 percent. Explain why and how this happened. Use the money multiplier to explain. Draw the graph to show the changes in the deposit creation process. Define the nonborrowed monetary base. Provide monetary policy suggestions in the above situation when money supply falls as the monetary base increases

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