Business, 21.12.2019 00:31 khalaflaf9381

The first three elements of a financial crisis are correctly represented as taking place in the following order:

a. large decline in some asset prices → insolvencies at financial institutions → decline in confidence in financial institutions

b. insolvencies at financial institutions → decline in confidence in financial institutions → large decline in some asset prices

c. insolvencies at financial institutions → economic downturn → credit crunch

d. insolvencies at financial institutions → credit crunch → economic downturn

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The first three elements of a financial crisis are correctly represented as taking place in the foll...