One Potential Weakness of the Coordination Failure Model as an Explanation

Multiple Choice

One potential weakness of the coordination failure model as an explanation of business cycles is that

A) evidence supporting intertemporal substitution as an important determinant of labor supply is weak.
B) evidence supporting the existence of increasing returns at the aggregate level is weak.
C) it fails to explain several of the key business cycle regularities.
D) it requires that consumers not behave in a rational manner.