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Which of the Following Is FALSE

Question 4

Multiple Choice

Which of the following is FALSE?


A) U) S. GDP underestimates actual economic activity because it does not include underground activity
B) an increase in the ratio of currency holdings to bank deposits may be seen as evidence for an increase in underground activity
C) if the underground economy grows rapidly, then the rate of economic growth will be underestimated
D) as the underground economy grows, consumption spending decreases
E) underground activity includes income from services produced at home but not reported, such as typing someone else's term paper

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