Which of the Following Statements Is Incorrect

question 60

Multiple Choice

Which of the following statements is incorrect?

• A)Budget deficits raise the national debt.
• B)The concepts of deficit and debt are closely related.
• C)Getting rid of the deficit eliminates accumulated debt.
• D)Budget surpluses lower the national debt.

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Definitions:

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per annum.

Years From Now

This term projects a future timeline or point in time from the present moment.

Interest Rate

The amount charged on top of the principal by lenders to borrowers, usually expressed as an annual percentage of the loan.

Interest Rate

The interest rate is the percentage of the principal charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.