| 答案如下 According to "new classical" economists, what effect will financing a reduction in current taxes by government borrowing have on aggregate demand? Aggregate demand will be: A) increased.
 B) reduced.
 C) unaffected.
 D) increased or reduced, depending on interest rate levels.
 Your answer: C was correct!
 New classical economists believe that fiscal policy is ineffective in smoothing the business cycle.
 
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