Author Question: Critics of rational expectation theory believe: a. most people are truly not very informed about ... (Read 58 times)

strangeaffliction · **on:** Jun 30, 2018

Critics of rational expectation theory believe:
a. most people are truly not very informed about the effects of a policy change.
b. most people do not adjust their behavior very rapidly to changes in government policies, in part because they are not informed about the effects of policy changes.
c. that wages and prices are not as flexible as the rational expectation theory assumes.
d. all of the above.

Question 2

The deleveraging of financial institutions led to the financial crisis of 2007-2008 sometimes also referred to as the _____.
a. stock crisis
b. debt crisis
c. stock market bubble
d. bank run
e. credit crisis