In 1933, four thousand banks failed. They failed because many consumer bank loans could not be paid back. People reduced their spending for non-essential goods and services to try to save their money or pay back their debts. Unemployment increased. Businesses struggled to sell their goods and services. 1. Think about this problem. Is it a boom scenario, bust scenario, stagflation scenario or supply side expansion scenario? 2. Use the changes or lack of changes in each of variables in The Quantity Theory of Money equation to support your choice of the scenarios. Explain what variables in the equation would increase, decrease or stay constant. Use the information in the word problem to support your findings