Which of the following statements is FALSE?
A) Fiscal policy is the attempt to influence the economy using taxes, transfer payments, and government expenditures.
B) Government expenditure affects aggregate demand directly because government expenditure is a component of aggregate demand.
C) Taxes and transfer payments affect aggregate demand by changing disposable income.
D) An increase in disposable income leads to a decrease in aggregate demand.
D
You might also like to view...
What type of intrinsic value or backing does U.S. currency have today?
A) none B) government bonds C) gold D) silver
The efficient markets hypothesis
A) assumes that market participants form their expectations adaptively. B) applies rational expectations to the pricing of assets. C) applies to the stock market, but not to the bond market. D) indicates that the stock market is efficient, but not rational.
The value of bonds outstanding
A) increases when the government runs a budget deficit and decreases when the government runs a budget surplus. B) decreases when the government runs a budget deficit and increases when the government runs a budget surplus. C) is independent of the government running either a budget deficit or a budget surplus. D) changes only when the government runs a budget deficit or surplus if the federal debt is zero.
In cartels, the reason that the monopoly output is unstable is due to the factors that are present in a prisoner's dilemma
a. True b. False Indicate whether the statement is true or false