Which of the Following Statements Is False

question 131

Multiple Choice

Which of the following statements is false?

• A) Increased government borrowing raises interest rates.
• B) Higher interest rates can depress investment.
• C) Lower investment means fewer capital goods in the future.
• D) Government deficits can have no effect on international trade.
• E) Government deficits can lower the level of output in the economy.

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Definitions:

Diffusion

The method in which a new idea is shared across specific channels over a period among individuals within a social structure.

Internal Validity

The extent to which a research study accurately establishes a cause-effect relationship between the treatment and the observed outcome, minimizing the confounding variables.

Random Assignment

A method used in experiments where participants are allocated to different groups purely by chance, minimizing bias and equalizing other variables.

Experimental Design

A research strategy that involves manipulating one or more variables to determine their effect on a dependent variable while controlling other factors.