these differences of opinion contributed to the federal reserves most serious sin of omission: failure to…

these differences of opinion contributed to the federal reserves most serious sin of omission: failure to stem the decline in the supply of money. from the fall of 1930 through the winter of 1933, the money supply fell by nearly 30 percent. the declining supply of funds reduced average prices by an equivalent amount. this deflation increased debt burdens; distorted economic decision - making; reduced consumption; increased unemployment; and forced banks, firms, and individuals into bankruptcy. the deflation stemmed from the collapse of the banking system... of 1930 and 1931. - \the great depression,\ gary richardson\nwhat was the \most serious sin of omission\ committed by the federal reserve?\n○ the failure to control the money supply\n○ the inability to regulate spending\n○ the decision to allow banks to fail\n○ the choice to bankrupt investors

these differences of opinion contributed to the federal reserves most serious sin of omission: failure to stem the decline in the supply of money. from the fall of 1930 through the winter of 1933, the money supply fell by nearly 30 percent. the declining supply of funds reduced average prices by an equivalent amount. this deflation increased debt burdens; distorted economic decision - making; reduced consumption; increased unemployment; and forced banks, firms, and individuals into bankruptcy. the deflation stemmed from the collapse of the banking system... of 1930 and 1931. - \the great depression,\ gary richardson\nwhat was the \most serious sin of omission\ committed by the federal reserve?\n○ the failure to control the money supply\n○ the inability to regulate spending\n○ the decision to allow banks to fail\n○ the choice to bankrupt investors

Answer

Answer:

the failure to control the money supply

Brief Explanations:

The text states the Federal Reserve's most serious sin of omission was failure to stem the decline in money - supply. This indicates the inability to control the money supply was the key issue.