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Which of the Following Events Led to the Crisis in Macroeconomics

Question 23

Multiple Choice

Which of the following events led to the crisis in macroeconomics and to the development of rational expectations theory?


A) Stagflation in the 1970s.
B) The stock market crash of 1987.
C) Large budget deficits in the 1980s.
D) The stock market speculative bubble of the late 1990s.
E) The Great Depression.

Correct Answer:

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