Which of the Following Is False

question 103

Multiple Choice

Which of the following is false?

• A) Aggregate demand is a specific dollar amount, such as $400 billion.
• B) At a given price level, anything that changes total expenditures changes aggregate demand.
• C) Total expenditures rises if consumption rises, ceteris paribus.
• D) Total expenditures rises if investment spending rises, ceteris paribus.

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Definitions:

Mortgage-backed Security

A type of asset-backed security that is secured by a collection of mortgages, allowing investors to gain exposure to the home loans market without directly lending to borrowers.

Federal Reserve

The central banking system of the United States, responsible for implementing the country’s monetary policy and regulating its financial institutions.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable changing while holding others fixed.

Comparative Advantage

In economics, comparative advantage refers to the ability of a country or individual to produce a particular good or service at a lower opportunity cost than its competitors.