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It is believed that the money supply in the U. S. A. fell during the Great Depression even though the monetary base was steadily increased
It is believed that the money supply in the U. S. A. fell during the Great Depression even though the monetary base was steadily increased through an expansionary monetary policy. Explain, using your understanding of the money supply model, how this result might have occurred. Do you think the same phenomenon is presently occurring in that country as a result of the financial crisis of 2007/2008? Explain.
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