Which statement is false?
A) Consumer spending is business income.
B) Business spending is consumer income.
C) If consumers and businesses both increase spending, everyone's incomes falls.
D) If consumers and businesses both increase spending, employment increases.
E) Falling wages decrease demand in output markets.

Question

Quizplus · Accepted Answer

If both consumers and businesses increase their spending, income and employment will actually increase, not decrease. Therefore, statement C is false.

Which Statement Is False