Which of the following statements is false? (Assume ceteris paribus.)

Question

Quizplus · Accepted Answer

Statement C is false because a rise in investment, a rise in exports, and a fall in imports would actually increase aggregate demand, not reduce it. Investments increase spending on capital goods, exports mean more foreign spending on domestic goods, and a fall in imports reduces the outflow of domestic currency to foreign markets, all contributing to an increase in aggregate demand.

Which of the Following Statements Is False? (Assume Ceteris Paribus