Which of the Following Is a Source of Intellectual Failure

question 10

Multiple Choice

Which of the following is a source of intellectual failure on the part of macroeconomics in predicting the crisis?

• A) Economists did not think financial crises could happen.
• B) Some economists sounded the alarm but were ignored.
• C) Financial intermediation is important to finance not economics.
• D) The financial system is too complex to be included in macroeconomic models.
• E) A lack of focus on the role of financial institutions in the economy.

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Definitions:

Alzheimer's disease

A degenerative brain disorder characterized by memory loss, cognitive decline, and personality changes.

Osteoarthritis

A degenerative joint disease characterized by the breakdown of cartilage and underlying bone, leading to pain and stiffness, primarily in the hips, knees, hands, and spine.

Stereotyping

Generalizing about a group of individuals in a way that ignores the diversity within the group, often leading to misconceptions and biased attitudes.