Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) Notes payable usually require the borrower to pay interest.
• B) Notes payable are sometimes used instead of accounts payable.
• C) Most notes and bank loans are non-interest bearing.
• D) Notes payable reflect a promise to repay a specified amount of money either at a fixed future date or on demand.

---

Definitions:

Total Spending

The aggregate amount of expenditure by all sectors of the economy, including households, businesses, government, and foreign buyers.

Larger Output

Production at a higher volume, often pursued to achieve economies of scale and reduce the average cost per unit.

Government Purchases

Expenditures by the government sector for goods and services that government consumes in providing public services and for public capital that has long-term usage.

Consumption

The total amount of goods and services consumed by households over a specific time period.