The "No - Markets Fail Often" camp argues that
A) interest rates are more important than expectations for business investment decisions.
B) most shocks are external to the economy.
C) supply shocks are more important than demand shocks for explaining business cycles.
D) business expectations are rational.
E) government is the solution to business cycles, not the problem.

Question

Quizplus · Accepted Answer

The "No - Markets Fail Often" camp believes that markets are prone to failures and inefficiencies, and thus government intervention is necessary to correct these failures and stabilize business cycles.

The "No - Markets Fail Often" Camp Argues That