1.“Interest rates can be measured more accurately and more quickly than the money supply. Hence an interest rate is preferred over the money supply as an intermediate target.” Do you agree or...

1.“Interest rates can be measured more accurately and more quickly than the money supply. Hence an interest rate is preferred over the money supply as an intermediate target.” Do you agree or disagree? Explain your answer. 2. Explain why the rise in the discount rate in 1920 led to a sharp decline in the money supply. 3. How did the Fed’s failure to perform its role as the

lender of last resort contribute to the decline of the money supply in the 1930–1933 period?