Question: Consider the following statement: Without a well-functioning financial system, it is not possible for an economy to reach its full potential for economic growth. a.

Consider the following statement: “Without a well-functioning financial system, it is not possible for an economy to reach its full potential for economic growth.”
a. Briefly explain whether you agree with this statement.
b. How does a well-functioning financial system help to explain why so many governments devoted resources to financial market stabilization during the 2007–2009 crises?

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