Which of the Following Statements Is FALSE

question 346

Multiple Choice

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.

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Definitions:

Standard Deviation

A measure of the extent to which a set of scores vary on either side of their mean value. The square root of variance. See also standard error.

Individual Score

The specific performance or result attained by an individual in an assessment or evaluation.

Dependent Samples

Pairs or groups of observations in a study that are related or matched in some way.

Normal Curve

Curve resulting from the plot of values with a normal distribution. It is often called a bell curve because of its shape.