alleryStart learning →Friedman said the Fed turned a recession into the Great Depression by:
APrinting money rapidly
BRaising government spending
CCutting income taxes
DContracting the money supply
Answer & Solution
Correct answer: D. Contracting the money supply
Friedman argued the central bank erred by contracting the money supply very rapidly after the 1929 crash.
Keep practising Business Cycles
Browse all Business Cycles questions for CA Foundation, or explore more Business Economics topics.
Related questions
Double-dip recessions are described as which shape?A short, sharp contraction followed by rapid recovery is called which shaped recession?A recession with GDP down by 10 percent, or lasting three or four years, is called:The UK and Canada define a recession as GDP falling for:A recession is best described as a business cycle:Compared with long-term trends, business cycles are usually seen as a:A one-off change such as a worker strike over a year or two is usually regarded as:Which years mark the Great Depression in the economic history of the West?