A possible sequence for the three stages of a financial crisis in the U.S.might be ________ leads to ________ leads to ________.

Question

Quizplus · Accepted Answer

Asset price declines often lead to banking crises as banks may not be able to cover their losses from the declining assets. Banking crises can then lead to an unanticipated decline in the price level as the credit supply is restricted and the economy experiences a period of contraction.

A Possible Sequence for the Three Stages of a Financial