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During the Great Depression, individuals were afraid that banks would fail and they would lose their ...

During the Great Depression, individuals were afraid that banks would fail and they would lose their money. This meant that many people tried to withdraw their money at the same time, putting stress on banks, causing them to actually fail, and lose people money. This bank run is an example of ________.

▸ co-movement

▸ the Phillips Curve

▸ Real Business Cycle Theory

▸ a self-fulfilling prophecy

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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