I prefer the term "confabulation" to "lying", both because it's more accurate and it's more fun to say. Confabulation is when you don't know that you're lying, it's just your dumb brain coming up with stuff that turns out not to be real. Like if you're asked "are there any red cars parked on the street in the neighborhood where you live?" Your brain hears "I want a memory of a red car parked on the street" and it helpfully delivers exactly that.