Withdrawing large volumes of money from financial

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1. Would a series of bank runs in a country (people rapidly withdrawing large volumes of money from financial institutions) decrease the total quantity of M3? Wouldn't a bank run simply move funds in demand deposit accounts to currency in circulation?

2. If Australia's rate of inflation rose to over 3 per cent for a few months during a year, but then returned to below 3 per cent, does this mean that the RBA's goal of inflation targeting has failed? Explain.

Reference no: EM132316986

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