Which One of the Following Statements Is FALSE

question 59

Multiple Choice

Which one of the following statements is FALSE?

• A) The United States had accumulated substantial foreign wealth by the early 1980s.
• B) The 1980s witnessed a sustained current account deficit of proportions unprecedented in the twentieth century opened up.
• C) In 1987, the country became a net debtor to foreigners for the first time since World War I.
• D) U.S. foreign debt has continued to grow and now stands at 25 percent of GNP.
• E) The U.S. foreign debt was paid off in the 1990s, allowing the U.S. to attain a current account surplus. However, the deficit has returned in recent years.

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Definitions:

Non-Cash Benefits

Forms of compensation provided to employees or beneficiaries that are not paid out in cash, such as health insurance, pension contributions, and food assistance.

In-Kind Benefits

Non-cash goods or services provided to beneficiaries, such as food stamps, housing, and healthcare, aimed to aid those in economic need.

Poverty Rate

The ratio of the number of people whose income falls below the poverty line; usually taken as a percentage of the population in a given country or region.

Government

The organization, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it.