The U.S. money supply fell during the years 1929 to 1933 because both the currencydeposit ratio and
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a. What would have happened to the money sup-ply if the currency–deposit ratio had risen but the reserve–deposit ratio had remained the same?
b. What would have happened to the money supply if the reserve–deposit ratio had risen but the currency–deposit ratio had remained the same?
c. Which of the two changes was more responsible for the fall in the money supply?
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Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
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