Quiz #281

• 1. The private domestic sector of the economy can save overall, as long as the net exports are positive.
• False
• True
• 2. The payment to the private banks on reserves they hold with the central bank reduces their incentive to advance credit to the private sector.
• False
• True
• 3. A country can only start to reduce its public debt relative to GDP when the government can run primary fiscal surpluses (that is, government spending net of interest payments on debt is less than taxation).
• False
• True

Quiz #281 answers

• 1. The private domestic sector of the economy can save overall, as long as the net exports are positive.

Answer: False

• 2. The payment to the private banks on reserves they hold with the central bank reduces their incentive to advance credit to the private sector.

Answer: False

• 3. A country can only start to reduce its public debt relative to GDP when the government can run primary fiscal surpluses (that is, government spending net of interest payments on debt is less than taxation).

Answer: False