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.