The "Yes - Markets Self-Adjust" Camp Argues That

Multiple Choice

The "Yes - Markets Self-Adjust" camp argues that

A) expectations are more important than interest rates for business investment decisions.
B) most shocks are internal to the economy.
C) demand shocks are more important than supply shocks for explaining business cycles.
D) business expectations are rational.
E) government is the solution to business cycles, not the problem.