If people speculate that a run on one bank will cause a run on ...

[sheilaspns]

If people speculate that a run on one bank will cause a run on all banks in the financial system, and this speculation proves accurate, then the financial system would experience what is known as a
 
  A) securitization meltdown. B) commodity crisis.
  C) bank panic. D) institutional death spiral.

Question 2

Models that focus on factors such as technology shocks rather than monetary explanations of fluctuations in real GDP are called
 
  A) rational expectations models. B) real business cycle models.
  C) short-run macroeconomic models. D) nonmonetary business cycle models.

[ryrychapman11]

Answer to Question 1

C

Answer to Question 2

B