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Failure on planned aggregate expenditure

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Reference no: EM131980040

During the onset of the global financial crisis many of the world's central banks and governments prevented large banks to fail. If these institutions had allowed this occur there would have been large-scaled bank failure which would have had a negative impact on bank deposits. Using the Keynesian model illustrate and explain the impact of a large- scale bank failure on planned aggregate expenditure.

Reference no: EM131980040

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