1. Cause of Great Depression
... . The equation that is used to spot the source of the decline in the money stock is M = [(1+cd)/(cd+rd)] B. Where M is the stock of money, cd is the currency-deposit ratio, rd is the reserve-deposit ratio, and B is the financial base. The expression [(1+cd)/(cd+rd)] is the money multiplier. In figure 1.10 the monetary base gradually increased during the late 1920s and ... ...
- Word Count: 261
- Approx Pages: 1
- Grade Level: High School