Which of the following is a likely consequence of a fall in private investment?

According to the life-cycle hypothesis ________

A) households consume on the basis of their current income and liabilities B) household consumption as a percentage of income varies over one's lifetime C) current income is a function of future income D) cycling to work everyday allows one to live a longer life

Transfer payments are included in the government budget deficit but not included in the government purchases component of GDP

a. True b. False Indicate whether the statement is true or false