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There are over 5,000 banks in United State-- more than ten times the number per capita than other industrialized countries. A recent study indicates that the long-run average cost curve for an individual bank is basically flat. If Congress took steps to consolidate banking, thereby reducing the number of banks by half, what would you expect to happen in the industry? Why?

Macroeconomics, Economics

  • Category:- Macroeconomics
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