Quiz #145

• 1. The government has two macroeconomic policy arms available - fiscal and monetary policy. However, it only has control over monetary policy.
• False
• True
• 2. Americans enjoy a higher material standard of living as a result of the Chinese holdings of US government debt.
• False
• True
• 3. The creation of a sovereign wealth fund from the proceeds of a budget surplus represents increased national savings.
• False
• True
• 4. Engaging unemployed workers in a government public works program to dig a large hole and fill it in again on a daily basis will provide no enduring benefit to national income.
• False
• True
• 5. Premium Question: A strategy to force the government to balance its budget means that the private domestic sector has to be continously accumulating debt overall unless the current account moves into surplus.
• False
• True