Quiz #202

• 1. The automatic stabilisers always support growth when the economic growth is slowing.
• False
• True
• 2. Continuous budget deficits are more likely to present an inflation risk than one-off deficits designed to meet a short-term private spending decline.
• False
• True
• 3. To maintain financial stability, the monetary base has to be driven by changes in the money supply.
• False
• True

Quiz #202 answers

• 1. The automatic stabilisers always support growth when the economic growth is slowing.

Answer: True

• 2. Continuous budget deficits are more likely to present an inflation risk than one-off deficits designed to meet a short-term private spending decline.

Answer: False

• 3. To maintain financial stability, the monetary base has to be driven by changes in the money supply.

Answer: True