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    Macroeconomics Study Set 39
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    Exam 20: The Financial System: Opportunities and Dangers
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    If Banks Fear Failure and Become More Conservative in Making
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If Banks Fear Failure and Become More Conservative in Making

Question 68

Question 68

Multiple Choice

If banks fear failure and become more conservative in making loans, then the sharp decline in bank lending is called a credit:


A) crunch.
B) hazard.
C) bubble.
D) swap.

Correct Answer:

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