Answer:
Contagion Effect
Explanation:
Contagion Effect is the <u><em>spread of an economic crisis</em></u> from one market or a region to another. It refers the diffusion effect of crisis throughout a market.
Simply put, If a large bank sells off most of its assets quickly, the confidence in other banks declines.
Hence, it's said to have followed the contagion effect, spread of a crisis from one market to another.
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Inflation tax is an effect afflicted to the public due to holding of cash at the time of high inflation rates. As the government produces more money by printing authenticated paper assets, the inflation rate increases. This is why production of cash money is closely regulated.
If prices in the bond market become more volatile, everything else held constant, the demand curve for bonds shifts left and interest rates rises.
Interest is the amount paid by the borrower or deposit-taking financial institution to the lender or depositor in excess of the repayment of the principal at a specified rate. It is different from a fee that a borrower can pay to a lender or a third party.
Interest is the price you pay to borrow money or the cost you charge to borrow money. Interest is usually given as an annual percentage of the loan amount. This percentage is called the interest rate on the loan. For example, if you deposit money in a savings account, your bank will pay you interest.
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