One Variant of Rational Expectations Theory That Supports the Long-Run

question 21

Multiple Choice

One variant of rational expectations theory that supports the long-run neutrality of fiscal policy asserts that

• A) any tax reduction enacted now ultimately is covered by a future tax increase because all federal borrowing must eventually be paid off.
• B) any government spending financed by either higher taxes or increased borrowing must somehow be covered by taxpayers' liabilities.
• C) people that anticipate future tax increases immediately begin to save to cover their future liability and thus reduce aggregate demand by an amount equal to the anticipated stimulus.
• D) all of the above fit together to predict fiscal neutrality.
• E) none of the above can be used to predict fiscal neutrality.

Understand legal and educational strategies for inclusion and special education.

Recognize the signs and symptoms of neurodiverse conditions and their implications on children's learning and behavior.

Identify strategies and practices for supporting children with autism spectrum disorder.

Understand the socio-cultural framework's impact on cognitive development.

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Definitions:

Level Of Significance

A threshold in hypothesis testing, representing the probability of rejecting a true null hypothesis, typically denoted by alpha.

Null Hypothesis

A statement asserting there is no effect or no difference, which researchers attempt to disprove through statistical testing.

Alternative Hypothesis

A statement in hypothesis testing that proposes a significant difference or effect, contradicting the null hypothesis.

Statistical Evidence

Data and information gathered from statistical analyses that support or reject hypotheses, used to make conclusions or inferences about the characteristics of populations.