Final answer:
The incorrect statement is (E), as declarative memory pertains to the conscious recall of facts and events, not skills and habits which are part of implicit memory.
Step-by-step explanation:
The statement that is not true among the options provided is (E) Declarative memory involves memories for skills, habits, and things learned through classical conditioning. This is incorrect because declarative memory refers to memories of facts and events that we can consciously recall, such as episodic and semantic memories. Skills, habits, and classical conditioning fall under implicit memory, which is not part of our conscious awareness and is used to perform actions.
Deep processing, as mentioned in option (A), indeed involves elaborative rehearsal where information is thought about in depth, especially in terms of its meaning and relation to other knowledge. The statement in (B) is also true; automatic processing is the unconscious encoding of incidental information such as space, time, and frequency, and of well-learned information, such as word meanings. As for (C), it describes a concept known as displacement from short-term memory, whereas interference typically refers to one memory competing with or replacing another, affecting its retrieval. Finally, (D) is accurate, stating that the levels of processing theory suggests that the depth of encoding impacts the ability to remember information.