Which Two Famous Economists Hypothesized That People Would Adapt Their

question 154

Multiple Choice

Which two famous economists hypothesized that people would adapt their expectations about inflation to something consistent with their prior experiences?

• A) Ben Bernanke and Alan Greenspan
• B) Milton Friedman and Edmund Phelps
• C) Adam Smith and David Ricardo
• D) John Maynard Keynes and F.A.Hayek
• E) Irving Fisher and Adam Smith

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Definitions:

Reconstruction Finance Corporation

A government agency established in 1932 in the United States to provide financial support to banks, industries, and other institutions to stimulate economic recovery.

Struggling Banks

Financial institutions experiencing significant challenges such as liquidity issues, insolvency, or failure to meet regulatory requirements.

Congress 1932

Refers to the 72nd United States Congress, notable for its enactment of significant legislation during the Great Depression under President Franklin D. Roosevelt's New Deal.

Nationalizing Industries

The transfer of private sector enterprises to the ownership and operation of the government with the goal of taking control over critical industries or resources.