In most of the macroeconomic models built before the crisis, what role did the financial system and intermediation play?

Question

Quizplus · Accepted Answer

In most of the macroeconomic models built before the crisis, the role of banks and other financial institutions in the economy was largely ignored or played a minor role, which is represented by options A and B. The fields of finance or corporate finance carried out most of the work on the elements needed to understand the crisis, but these elements were not fully incorporated into macroeconomic models, which is represented by option C. Therefore, the best choice is D - Both A and B.

In Most of the Macroeconomic Models Built Before the Crisis