Which of the Following Statements Is False

question 150

Multiple Choice

Which of the following statements is false?

• A) The exchange rate is the price of one (country's)currency in terms of another (country's)currency.
• B) A currency has appreciated in value if more of a foreign currency is needed to buy it.
• C) A change in the money supply can change aggregate demand.
• D) A change in business taxes can change investment,which can change aggregate demand.
• E) none of the above

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Competitive Markets

Markets where numerous producers and consumers interact, leading to efficient distribution of goods and services and price determination through supply and demand.

Supply and Demand

A fundamental economic model that describes how prices and quantity of goods and services are determined in a market.

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, causing the market to be in a state of balance.