单选题 New classical economists believe expansionary fiscal policy has no affect on aggregate demand because:

A. fiscal policy does not influence monetary policy.
B. fiscal policy substitutes government demand for private sector demand.
C. consumers will decrease spending and increase savings in anticipation of higher taxes to repay government borrowing.

【正确答案】 C

【答案解析】New classical economists believe that macroeconomic policy is an ineffective tool for improving economic stability. The substitution of taxes will leave private consumption, aggregate demand, and real interest rates unchanged.