6. A bank run occurs when depositors lose confidence in a bank and make sudden, large withdrawals....

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6. A bank run occurs when depositors lose confidence in a bank and make sudden, large withdrawals. A run can cause a previously healthy bank to fail. It can result from self-fulfilling expectations: people withdraw money because they expect withdrawals by others. LOP8

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Macroeconomics And The Financial System

ISBN: 9781429253673

1st Edition

Authors: N. Gregory Mankiw, Laurence Ball

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