Which of the following is FALSE?
A)As the interest rate falls,planned expenditure must be greater than actual expenditure.
B)As the interest rate falls,planned expenditure rises.
C)As the interest rate falls,the IS curve shifts to the right.
D)As the interest rate falls,planned expenditure can be greater than actual expenditure.

Question

Quizplus · Accepted Answer

As the interest rate falls, planned expenditure may be less than, equal to or greater than actual expenditure, and it is not necessary that planned expenditure is greater than actual expenditure. Therefore, statement A is false.

Which of the Following Is FALSE