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11- Consider the following U-S- historical data is from the 1930 s- (a.docx

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11. Consider the following U.S. historical data is from the 1930 s: (a) Please use the data in table 1 to fill in table 2. Table 2 June 1930 June 1931 C/D R / D M B (money base) m (multiplier) M (money supply M 1 ) (b) Based on your calculations in table 2, explain what happened. Discuss what happened to the Money Base, Money Supply, and multiplier. Which player in the money supply process controls each. (c) What policy mistake did the FED make? .

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11. Consider the following U.S. historical data is from the 1930 s: (a) Please use the data in table 1 to fill in table 2. Table 2 June 1930 June 1931 C/D R / D M B (money base) m (multiplier) M (money supply M 1 ) (b) Based on your calculations in table 2, explain what happened. Discuss what happened to the Money Base, Money Supply, and multiplier. Which player in the money supply process controls each. (c) What policy mistake did the FED make?

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