The "No - Markets Fail Often" Camp Argues That

question 74

Multiple Choice

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.

---

Definitions:

Synovial Membrane

A specialized connective tissue that lines the inner surface of capsules of synovial joints, secreting synovial fluid for lubrication.

Cruciate Ligament

One of the major ligaments in the knee, crucial for stabilizing the joint, including both the anterior and posterior varieties.

Synovial Joint

A type of joint that is surrounded by a fluid-filled capsule, allowing for smooth movement between bones and is commonly found in the knees, elbows, and shoulders.

Fibrous Capsule

A dense layer of connective tissue that surrounds organs, such as the kidney and liver, providing protection and structural support.