Which of the following statements is (are) correct?
A) Even the earliest political business cycle and partisan models assumed that expectations were rational.
B) The partisan model of fiscal policy cannot be modified to be consistent with rational expectations.
C) the myopic,or short-sighted behavior of voters is inconsistent with rational expectations.
D) The earliest political business cycle models assumed that expectations were always rational,whereas the partisan model assumed that expectations were sometimes irrational.
Correct Answer:
Verified
Q12: Advocates of the public-choice view argue that
Q13: According to the partisan theory,
A)politicians are viewed
Q14: If the tax function is T =
Q15: The structural deficit is
A)directly attributable to the
Q16: According to the partisan theory model,what motivates
Q18: Suppose that the MPC out of disposable
Q19: The higher the marginal income tax rate,the
A)higher
Q20: Suppose that the MPC out of disposable
Q21: While deficits in the United States through
Q22: In the Keynesian model,
A)the autonomous expenditure multiplier
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