Question
During the onset of the global financial crisis, many of the world's central banks and governments prevented large banks from failing. If these institutions had
During the onset of the global financial crisis, many of the world's central banks and governments prevented large banks from failing. If these institutions had allowed this to occur, there would have been large-scale bank failure, which would have had a negative impact on bank deposits. Using the Keynesian model, illustrate and explain the impact of a large-scale bank failure on planned aggregate expenditure.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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