Which of the Following Statements Is False

question 116

Multiple Choice

Which of the following statements is false?

• A) Keynes believed that monopolistic elements in the economy will prevent immediate price declines.
• B) Keynes believed that during periods of high unemployment,labor unions will prevent wages from falling fast enough to restore full employment.
• C) Keynes believed that interest rate flexibility will ensure that saving is equal to investment.
• D) Keynes did not believe in Say's law.

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Definitions:

Depreciable Asset

An asset which loses value over time due to wear and tear or obsolescence and can be written off as an expense over its useful life for tax and accounting purposes.

Selling Price

The amount of money a buyer pays to acquire a product or service from a seller.

Book Value

The value of a company's assets minus its liabilities, often used to assess its financial health or compare its market value.

Loss On Sale

An economic condition wherein the selling price of an asset is less than its carrying value, resulting in a financial loss.