Author Question: The Diamond-Dybvig model provides a rationale for the phenomenon of A) undercapitalized banks. ... (Read 11 times)

abarnes · **on:** Jun 30, 2018

The Diamond-Dybvig model provides a rationale for the phenomenon of

A) undercapitalized banks.
B) banks making overly risky loans.
C) bank runs.
D) deflation.

Question 2

The proposition that the velocity of money is fairly constant in the long run is known as the ________.

A) neutrality of money
B) classical dichotomy
C) quantity theory of money
D) Fisher effect
E) none of the above