1. Even though a national government is not revenue constrained, their surpluses can add to national saving if they arise from the private sector spending less than total GDP (income) produced.

Answer: False

Explanation: You might read Debates in modern monetary macro or post a comment if you want further information.

2. The latest ABS data shows that total hours worked are falling relative to total persons employed which must mean that underemployment is replacing unemployment.

Answer: False

Explanation: You might read The labour market barely hanging on or post a comment if you want further information.

3. A single banks can rid itself of excess reserves held with the central bank by lending them into the Interbank market whereas a system-wide reserve excess can be eliminated if consumers withdraw their deposits and spend the money on real goods and services.

Answer: False

Explanation: You might read Debates in modern monetary macro or post a comment if you want further information.

4. An understanding of modern monetary theory reveals that from a macroeconomic perspective the sovereign government only ever borrows funds that it has already previously spent.

Answer: True

Explanation: You might read Why doesnt this attract headlines? or post a comment if you want further information.

5. If there is a current account deficit, and the domestic private sector seeks to increase its saving as a percentage of GDP, then income adjustments will ensure the government budget is in deficit.

Answer: True

Explanation: You might read How do budget deficits finance saving? or post a comment if you want further information.