Quiz #282
- 1. A currency-issuing government can always ensure there is first-class services to meet the demands of an ageing population
- 2. For a nation running a very small current account deficit (close to balance), the government fiscal balance will always be in deficit if the domestic private sector is spending less than it earns.
- 3. Ignoring laws to the contrary, a central bank currently targetting a 2 per cent short-term policy rate, cannot directly purchase treasury debt to facilitate the national governments fiscal deficit (that is, "monetise the deficit") and continue to maintain its policy rate at 2 per cent.
Quiz #282 answers
- 1. A currency-issuing government can always ensure there is first-class services to meet the demands of an ageing population
Answer: False
- 2. For a nation running a very small current account deficit (close to balance), the government fiscal balance will always be in deficit if the domestic private sector is spending less than it earns.
Answer: True
- 3. Ignoring laws to the contrary, a central bank currently targetting a 2 per cent short-term policy rate, cannot directly purchase treasury debt to facilitate the national governments fiscal deficit (that is, "monetise the deficit") and continue to maintain its policy rate at 2 per cent.
Answer: False