Business, 19.08.2019 18:10 hmontalvo22

The money multiplier declined significantly during the period 1930-1933 and also during the recent financial crisis of 2008-2010. yet the m1 money supply decreased by 25% in the depression period but increased by more than 20% during the recent financial crisis. what explains the difference in outcomes? a. there was a minimal increase in the currency ratio during the recent financial crisis. b. the excess reserves ratio increased rapidly during the recent financial crisis. c. there was a significant increase in the monetary base during the recent financial crisis. d. the overall level of deposit expansion decreased during the recent financial crisis.

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