Which of the Following Statements Is False

question 97

Multiple Choice

Which of the following statements is false?

• A)The assumption that income is the only influence on consumption is a simplifying assumption.
• B)Assuming consumption spending responds to income will improve a forecast.
• C)The assumption that only consumption spending responds to income is a simplifying assumption.
• D)Consumption responds to changes in other factors besides income.
• E)The assumption that investment and net exports do not respond to changes in income is based on evidence from the U.S.economy.

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Definitions:

Medicare Tax

Medicare Tax is a federal tax that funds the Medicare program, typically deducted from an employee's paycheck to provide healthcare benefits to individuals aged 65 and older.

Time And A Half

Time and a half refers to the pay rate that is 1.5 times higher than the normal rate, usually applied to hours worked beyond the standard workweek.

Net Pay

The amount of money that an employee receives after deductions such as taxes and social security contributions have been subtracted from their gross salary.

Overtime

Additional hours worked beyond the standard or agreed working hours, typically compensated at a higher pay rate.