Quiz #18

• 1. If the flows from part-time employment to full-time employment are less than the flows from full-time employment to part-time employment then part-time employment must be rising.
• True
• False
• 2. The billions of US dollars that the Federal Reserve in America has pumped into reserves has made it easier for commercial banks to lend and kick start the economy.
• False
• True
• 3. Rising yields on government bonds will accompany a falling demand for the bonds relative to their supply into the bond markets.
• False
• True
• 4. A sovereign government holding foreign currency denominated debt is less exposed to exchange rate movements than a household which uses the currency because the government issues the currency and can credit bank accounts.
• False
• True
• 5. Luigi Pasinetti said that "investment brings forth its own saving". This insight tells you that government deficits will never result in financial crowding out.
• False
• True