Which of the following statements is consistent with the Lucas critique?
A) A penny saved is a penny earned.
B) Honesty is the best policy.
C) Correlation is not causation.
D) History repeats itself.

Question

Quizplus · Accepted Answer

The Lucas critique argues that economic policies cannot be accurately evaluated based on historical data alone because people's behavior changes in response to new policies, which is related to the idea that "correlation is not causation."

Which of the Following Statements Is Consistent with the Lucas