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Read the Case Study in the textbook on pp. 97-98. It discusses that the money supply decreased between 1929 and 1933 because the cr and
Read the Case Study in the textbook on pp. 97-98. It discusses that the money supply decreased between 1929 and 1933 because the cr and rr ratios increased. Answer the below questions using the money supply model and Table 4-2 data: a. What would have happened to M if the cr had increased but the rr remained unchanged? b. What would have happened to M if the rr had increased but the cr remained unchanged? c. Which of the two changes contributed more to the decrease in M?
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