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Which one of the following statements applies to the effect that expectations can have during periods of contraction? Multiple choice question. Expectations of continuing declines

Which one of the following statements applies to the effect that expectations can have during periods of contraction? Multiple choice question. Expectations of continuing declines in income will cause households to decrease consumer spending. Expectations of continuing declines in income and spending will cause foreign consumers and businesses to spend more. Expectations of continuing declines in spending will cause businesses to invest more. With reductions in output and spending, households and businesses will assume that the trend of will soon be reversed

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