Which of the Following Statements Is False

question 97

Multiple Choice

Which of the following statements is false?

• A)The assumption that income is the only influence on consumption is a simplifying assumption.
• B)Assuming consumption spending responds to income will improve a forecast.
• C)The assumption that only consumption spending responds to income is a simplifying assumption.
• D)Consumption responds to changes in other factors besides income.
• E)The assumption that investment and net exports do not respond to changes in income is based on evidence from the U.S.economy.

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A political and economic ideology aiming for a classless society where the means of production are communally owned and everyone contributes and receives according to their ability and needs.

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