Identify Which of the Following Statements Is False

question 21

Multiple Choice

Identify which of the following statements is false.

• A)Earned income is excludable from gross income only if it is foreign-source income.
• B)Taxable pensions and annuities are excluded from the definition of earned income when computing the foreign-earned income exclusion.
• C)An individual meets the bona fide resident test by establishing a home in a foreign country for 330 days.
• D)All of the above are false.

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Definitions:

Aggregate Income

The total sum of income earned by individuals and businesses in an economy over a specified period.

Aggregate Consumption

This refers to the total amount of goods and services consumed by a population or economy over a certain period.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.

Aggregate Income

The total income earned by all individuals or entities in an economy, including wages, profits, rents, and investment earnings, over a specific time period.