Devastating effect on the course of the great depression

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Reference no: EM13773083

According to Milton Friedman and Anna Schwartz, what was the Federal Reserve’s crime of commission that occurred in the Summer/Fall of 1931 that had a devastating effect on the course of the Great Depression?

a. The Federal Reserve did not comply with its primary mandate when it failed to deal with the bank crisis and runs created by the failure of a large foreign bank

b. The Federal Reserve raised interests in an effort to cool off the economy

c. The Federal Reserve decides to support the Gold Standard with higher interest rates and a large reduction in the money supply

d. The Federal Reserve let the Bank of the United States fail

e. The Federal Reserve increased the money supply too quickly

f. The Federal Reserve tried to make an omelet without breaking any eggs

Reference no: EM13773083

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