All of the Following Are Associated with Contagious Runs at DIs

question 35

Multiple Choice

All of the following are associated with contagious runs at DIs EXCEPT

• A)liability holders not distinguishing between good and bad FIs.
• B)liability holders seeking to quickly turn their liabilities into cash or safe securities.
• C)a contractionary effect on the supply of credit.
• D)negative social welfare effects.
• E)an expansionary effect on the regional money supply.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by the change in Real GDP.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of labor hours used to produce them.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, and water bodies.

Rate Of Population Increase

The rate at which a population grows or declines, considering factors like birth rates, death rates, immigration, and emigration.