In 1928 and 1929, the federal government’s tightening of the money supply was one of the policies that contributed to the great depression.

Question: In 1928 and 1929, the federal government’s tightening of the money supply was one of the policies that contributed to the great depression.

In the years 1928 and 1929, a series of economic decisions significantly impacted the financial stability of the United States. Among these was the federal government's decision to constrict the money supply. This monetary policy, characterized by reduced lending and increased interest rates, inadvertently contributed to the onset of the Great Depression. The limitation of available credit and capital hindered economic growth and exacerbated the financial woes of individuals and businesses alike, setting in motion a chain of events that would lead to one of the most challenging periods in American economic history.

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