Desired Reserves, 1930-1933 The graph on the right shows that during the Great Depression, the desired reserves ratio r rose dramatically. What do you think happened to the money supply? g 0.15 0.14 0.13 0.12 0.11 0.10 0.00 008- The money supply fell sharply. The money supply increased sharply. Desired Reserves Ratio 0.07 8 0.06 The money supply remained constant. 0.05 0.04 0.03 0.02- 0.01 0.00- 1930 1931 1932 Sources: Board of Governors of the Federal Reserve System and Miron Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, 1867-1960 (Princeton, NJ: Princeton University Press, 1963), p. 333 1933