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

[abarnes]

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

[deja]

Answer to Question 1

C

Answer to Question 2

E

[abarnes]

Excellent

[Mochi]

TYSM