Quiz #268

• 1. The public debt ratio is of no concern because economic growth will always bring it down after a recession.
• False
• True
• 2. A nation can run a current account deficit accompanied by a government sector surplus of equal proportion to GDP, while the private domestic sector is spending more than they are earning.
• False
• True
• 3. It is easier for banks to expand credit to the private sector when bank reserves are rising.
• False
• True

Quiz #268 answers

• 1. The public debt ratio is of no concern because economic growth will always bring it down after a recession.

Answer: False

• 2. A nation can run a current account deficit accompanied by a government sector surplus of equal proportion to GDP, while the private domestic sector is spending more than they are earning.

Answer: True

• 3. It is easier for banks to expand credit to the private sector when bank reserves are rising.

Answer: False