Quiz #270 answers

• 1. Private households, in aggregate, cannot save if a nation's external sector is in balance (and thus making no contribution to real GDP growth) and the government runs a balanced budget.

Answer: False

• 2. If we observed yields on 10-year government bond yields rising, we could not categorically state that bond markets are demanding increased risk premiums for these assets.

Answer: True

• 3. Continually expanding the money supply will inevitably be inflationary.

Answer: False