Which of the Following Statements Is False

question 5

Multiple Choice

Which of the following statements is false?

• A) An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase.
• B) Government spending is part of fiscal policy.
• C) A decline in government spending has a contractionary effect on the economy.
• D) Increasing government spending is a means to close a recessionary gap.
• E) An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in government spending.

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Definitions:

Utterances

Spoken words, statements, or vocal sounds that convey meaning and are a fundamental unit of speech in linguistics.

Imitation

The act of copying or mimicking the actions, speech, or behavior of others as a method of learning or social interaction.

Indirect Commands

Instructions or commands that are not expressed directly, often used in communication to suggest or imply what should be done without stating it openly.

Grammatical Errors

Mistakes made in the use of grammar, affecting the correctness and clarity of sentences.