Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) Keynes believed that the level of investment depends on more than just the interest rate.
• B) Saving is the difference between disposable income and consumption.
• C) Keynes believed that saving is more responsive to changes in income than to changes in the interest rate.
• D) According to Keynes,wage rates may fall too quickly when the economy is in a recessionary gap.

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Definitions:

Standard Factory Overhead Rate

A predetermined rate used to allocate manufacturing overhead to individual units of production, based on a standard cost system.

Machine Hour

A unit of measure indicating the operating time of a machine, typically used in costing and operational efficiency calculations.

Normal Capacity

The production level expected to be achieved under normal conditions by a company, taking into account seasonal and cyclical demands.

Total Factory Overhead Cost Variance

The difference between the actual factory overhead incurred and the expected (or standard) overhead costs.