What is the effect of monetary policy in the short run? What monetary crises are seen as partial causes for the Great Depression?

The correct answer to this open question is the following.

What is the effect of monetary policy in the short run?

The effect of monetary policy in the short run is that there is an increase in investments to elevate production and increase the consumption of the goods in the market. After a considerable period of time, the excess of money in the market gets into the hands of consumers and clients who can decide on buying more or save the money in the bank accounts.

What monetary crises are seen as partial causes for the Great Depression?

Although there are no options to answer this question we can say the following.

The monetary crises that are seen as partial causes for the Great Depression were a lack of deposit insurance and an excessive supply of loanable funds with little demand. These and the US stock market crash of October 29, 1929, initiated the worst economic crisis in the history of the United States: the Great Depression.

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