Suppose the depositors do not believe that any bank is safe and hold their cash outside the
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Question:
Suppose the depositors do not believe that any bank is safe and hold their cash outside the banking system. Explain how the bank run would affect money supply. With an aid of the money demand and money supply diagram, illustrate the impact of the bank run on the money market and interest rate.
Related Book For
Organizational Behavior
ISBN: 978-0273774815
8th Edition
Authors: Andrzej A. Huczynski, David A. Buchanan
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