Quiz #273

• 1. The distribution of national income has shifted in most advanced nations over the last two decades in favour of profits. This trend will only stabilise if workers can secure wage increases in line with the growth of labour productivity.
• False
• True
• 2. The real spending capacity of a currency-issuing government is constrained by the tax revenue it generates.
• False
• True
• 3. Under current public sector debt-issuance arrangements (where sovereign governments match their deficits with issues of debt), the government and the private domestic sectors can simultaneously reduce their debt levels.
• False
• True

Quiz #273 answers

• 1. The distribution of national income has shifted in most advanced nations over the last two decades in favour of profits. This trend will only stabilise if workers can secure wage increases in line with the growth of labour productivity.

Answer: False

• 2. The real spending capacity of a currency-issuing government is constrained by the tax revenue it generates.

Answer: True

• 3. Under current public sector debt-issuance arrangements (where sovereign governments match their deficits with issues of debt), the government and the private domestic sectors can simultaneously reduce their debt levels.

Answer: True