Quiz #233 answers

• 1. In most nations at present, both the government and the private domestic sectors are carrying historically large debt ratios. However, under current public sector debt-issuance arrangements and given the national accounting relations, only one of these sectors can reduce its debt level at a time.

Answer: False

• 2. If workers secure wage increases in line with the growth in their contribution to production their share in national income will be stable.

Answer: False

• 3. The real spending capacity of a sovereign (currency-issuing) government is constrained by the tax revenue it receives.

Answer: True