Of the following statements, which is
most in line with what most economists believe about the
macroeconomic role of financial markets?
Financial markets are quick to adjust and spread the
effects of disturbances in one sector to other
Financial markets are not a source of instability, but
price inflexibility in these markets keeps them, and
thus the rest of the economy, from adjusting once the
economy is disturbed.
Large amounts of speculation in
financial markets make them unstable, and this
instability is the primary source of macroeconomic
Financial markets play no substantial
role in macroeconomic events, and thus they can be