Let us go back to the case with $5 billion of mortgage losses, but now suppose that

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Let us go back to the case with $5 billion of mortgage losses, but now suppose that because there is an economy-wide recession, the bank also loses another

$10 billion on its non-mortgage assets (for example some of the companies it was lending to themselves go bankrupt). What happens in this case?

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3E Economics

ISBN: 9781292411019

3rd Global Edition

Authors: Daron Acemoglu, David Laibson , John List

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Question Posted: Nov 16, 2024 05:00 AM

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Let us go back to the case with $5 billion of mortgage losses, but now suppose that

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3E Economics

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