Which of the following statements is FALSE with regard to government budgets?
A. If interest rates decrease as the national debt increases, it costs the federal government more each
year to pay the interest payments on the debt.
B. A surplus exists when the amount of income received exceeds the amount of expenses paid.
C. Anyone who owns a government bond is a lender to that government and is paid interest by the
government for the use of their money.
D. A deficit exists when the amount of income received falls short of the amount of expenses paid.