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:

Owned

Having possession or legal right over something.

Installment Method

A method used in taxation allowing the recognition of income over a period of years when payment from a sale of property is received in installments.

Section 179 Deduction

A tax deduction that allows businesses to deduct the full purchase price of qualifying assets financed during the tax year.

Contract Price

The total monetary amount agreed upon by the parties involved in a contract for the exchange of goods, services, or property.