Quiz #200 answers

• 1. In general, the estimates provided by the organisations such as the OECD and IMF of the impact of the automatic stabilisers are biased upwards.

Answer: False

• 2. If there is an external deficit, efforts by the private domestic sector to increase its overall saving as a percentage of GDP, will ensure the government budget is in deficit, irrespective of what the government desires.

Answer: True

• 3. When a government runs a continuous budget deficit public spending builds up over time.

Answer: False