Which of the Following Statements Is FALSE

question 128

Multiple Choice

Which of the following statements is FALSE?

• A) The federal budget deficit in 2017 was about 3 percent of the GDP.
• B) A budget deficit of $100 billion in a given year increases the public debt by $100 billion.
• C) The public debt of $100 billion is the accumulated debt of all U.S. individuals, firms, and institutions.
• D) During the past five years, the U.S. public debt has been increasing.

---

Definitions:

Production

The process of creating, manufacturing, or enhancing goods and services.

Distribution

In business, distribution refers to the process of getting a product or service from the manufacturer or service provider to the end consumer.

Junk Bond

A high-yield bond with a lower credit rating, reflecting a higher risk of default but offering potentially greater returns.

High-Risk Bond

A bond with a lower credit rating, indicating a higher risk of default, but offering higher potential returns to compensate for this risk.