Which of the Following Statements Is False

question 129

Multiple Choice

Which of the following statements is false?

• A)Reducing taxes on interest income might encourage people to save more.
• B)Reducing taxes on interest income might reduce saving.
• C)A price increase will create income and substitution effects that will both always work to reduce consumption of the good.
• D)Utility is maximized when the marginal rate of substitution between any two goods equals the relative prices of the two goods.

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Definitions:

Evaporation

The process by which liquid water transforms into vapor or gas, often driven by heat from the sun.

Precipitation

Any type of water, whether in liquid or solid state, descending from the sky to the earth's surface, encompassing phenomena like rain, snow, sleet, and hail.

Acre-Foot

A unit of volume used in the United States to measure large-scale water resources, such as in reservoirs or irrigation, equal to the volume of water required to cover one acre of land one foot deep.

Football Fields

Standard units of measurement representing the playing area for American football, approximately 360 feet in length and 160 feet in width.