Quiz #262

• 1. Tax revenue provides a national government with non-inflationary spending capacity.
• False
• True
• 2. When there is an external deficit, the private sector can save overall (spend less overall than it earns) as long as the government supports saving by running a deficit.
• False
• True
• 3. When a sovereign government issues debt to match its fiscal deficit, the financial wealth of the non-government increases.
• False
• True

Quiz #262 answers

• 1. Tax revenue provides a national government with non-inflationary spending capacity.

Answer: True

• 2. When there is an external deficit, the private sector can save overall (spend less overall than it earns) as long as the government supports saving by running a deficit.

Answer: False

• 3. When a sovereign government issues debt to match its fiscal deficit, the financial wealth of the non-government increases.

Answer: False