Which of the following statements is false?
A) Disposable income is income plus transfers minus taxes.
B) Higher the disposable income, higher is the consumption, lower is the saving.
C) Higher the disposable income, higher is the consumption, higher is the saving.
D) Disposable income equals consumption plus saving.

Question

Quizplus · Accepted Answer

Statement B is false because it incorrectly suggests that higher disposable income leads to lower savings, which contradicts the general economic principle that higher disposable income typically allows for both higher consumption and higher savings.

Which of the Following Statements Is False