Assignment question, image attached with it.

The Great Depression was a period of instability in the banking sector in the United States. There were a series of bank failures starting in December 1930 and continuing until 1933. The below table contains data collected by Friedman and Schwartz: (a) (h) (C) ((1) Date CurrencyDeposit Ratio % ReserveDeposit Ratio % Dec 1928 7.68 7.7 Dec 1933 14.91 13.3 In brief, explain how changes in the currency-deposit ratio and the reserve-deposit ratio affect the money multiplier. (1 marks) Using the data above, calculate the implied money multiplier in December 1928 (prior to the Great Depression) and in December 1933 (towards the end of the period of bank failures). (1 mark) One could be interested in understanding Whether changes in the currency-deposit ratio or whether changes in the reserve-deposit ratio were more important in explaining the behaviour of the money multiplier during the Great Depression. One economist suggests the following approach: Imagine the reserve-deposit ratio re- mained unchanged at its December 1928 value throughout the Great Depression but that currency-deposit ratio went from its December 1928 value to its December 1933 value. How large would the change in the money multiplier have been in this situation? Use this as a measure of the contribution of the change in the currency-deposit rate to the change in the money multiplier. (1 mark) Now consider the alternative experiment: Imagine the currencydeposit ratio remains unchanged at its December 1928 valule throughout the Great Depression but that the reserve-deposit ratio went from its Decomeber 1928 value to its December 1933 value. How large would the change in this money multiplier have been in this situation? Use this as a measure of the contribution of the change in the reserve-deposit ratio to the change in the money multiplier. (1 mark) From your results above, discuss the importance of changes in the currency-deposit ratio relative to changes in the reserve-deposit rate in explaining changes in the money multiplier. (I mark)