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

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.