A bank panic can lead to a severe contraction in economic activity due to
A) a decline in international trade.
B) the losses of bank shareholders.
C) the losses of bank depositors.
D) a decline in lending for productive investment.
Answer: D
A bank panic can lead to a severe contraction in economic activity due to
A) a decline in international trade.
B) the losses of bank shareholders.
C) the losses of bank depositors.
D) a decline in lending for productive investment.