In a severe banking crisis: Selected Answer: D. the economy usually falls into a severe recession followed by a slow recovery.Answers: A. very few banks in the system actually go into bankruptcy.B.
the economy usually falls into a severe recession followed by a slow recovery.C. economic growth usually resumes quickly after the crisis is resolved.D. government intervention usually is not required, since the market outcome is always preferable to one that results from government intervention. Question 20 1 out of 1 points Long recessions often follow banking crises because: Question 21 0 out of 1 pointsAfter a banking crisis, when the Federal Reserve buys government securities to increase the money supply and
decrease interest rates: Question 22 1 out of 1 pointsSince the 1930s, following banking crises, if financial institutions are not able to borrow in private credit markets:
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