How did 1930s monetary policies lead America Into depression as supported by the reference? A-Unemployment led to a reduced money supply and the Federal Reserve lowered Interest rates as a response in monetary policy to the crisis; as a result, farmers and merchants increased business.
B-As banks desed, people lost money; and the Federal Reserve raised interest rates, which caused the money supply to decrease.
C-The Federal Reserve regulated the money supply by providing loans to keep employment high; at the same time, the state governments increased regulations on state banks.
D-Due to new monetary policies, banks closed and Interest rates rose; however, factories still expanded and people went back to work.