Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) Keynes believed that the level of investment depends on more than just the interest rate.
• B) Saving is the difference between disposable income and consumption.
• C) Keynes believed that saving is more responsive to changes in income than to changes in the interest rate.
• D) According to Keynes,wage rates may fall too quickly when the economy is in a recessionary gap.

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Definitions:

Oral Stop Payment Order

A verbal instruction given to a bank requesting that payment on a check or other financial instrument be stopped.

Clearinghouse

An intermediary agency or institution that facilitates the exchange and settlement of financial transactions among different entities.

Payor Banking Group

A consortium or group of banks that manages the payment and settlement of transactions for clients.

Written Stop Payment Order

A formal request made to a bank by an account holder instructing the bank not to pay a specific check or payment.