Which of the Following Statements Is Correct

question 6

Multiple Choice

Which of the following statements is correct?

• A) The economy's capacity to pay off its debt can grow over time
• B) The government cannot run a budget deficit forever, because productivity cannot increase over time
• C) As long as the government debt grows faster than the economy's income, government deficits can grow forever
• D) As long as the government debt grows more slowly than the economy's income, government deficits cannot grow forever

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Definitions:

Accounts Payable

Liabilities to creditors that represent amounts the company owes for purchases made on credit.

NSF Checks

Non-Sufficient Funds (NSF) checks are checks that cannot be processed because the drawer's account does not have enough funds.

Bank Service Charges

Fees charged by banks for the use of their services, such as account maintenance fees, transaction fees, and overdraft charges.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure accuracy and consistency.