Solved

Which of the Following Statements Is False

Question 20

Multiple Choice
Which of the following statements is false?

Which of the following statements is false?


A) An increase in government spending raises the equilibrium level of income by a multiple of the original spending increase.
B) Government spending is part of fiscal policy.
C) A decline in government spending has a contractionary effect on the economy.
D) Increasing government spending is a means to close a recessionary gap.
E) An increase in government spending shifts the aggregate demand curve downward by a fraction of the rise in government spending.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents