Which of the following statements is FALSE ?
A) Government expenditure affects aggregate demand directly because government expenditure is a component of aggregate demand.
B) Fiscal policy is the attempt to influence the economy using taxes, transfer payments, and government expenditures.
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.
Correct Answer:
Verified
Q148: Q149: If the expected future inflation rate decreases, Q150: People expect that the El Nino effect Q151: Aggregate demand increases when Q152: Which of the following shifts the aggregate Q154: Suppose consumers decrease their consumption expenditure because Q155: A change in_ creates a movement along Q156: Which of the following does NOT shift Q157: Which of the following changes would NOT Q158: An increase in aggregate demand is shown
A) foreign incomes fall.
B)
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