

McqMate
Q. |
According to the concept of rational expectations |
A. | Budget deficits are irrelevant to output in the short-run |
B. | Higher deficits should increase output in the short run if they are expected |
C. | Lower deficits can be used to stabilize output during expansions |
D. | None of these |
Answer» A. Budget deficits are irrelevant to output in the short-run |
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