Quiz #284 answers

• 1. If inflation is maintained at a rate equal to the interest rate, then the government deficit as a proportion of GDP could double (say from 2 to 4 per cent) without pushing up the public debt ratio.

Answer: True

• 2. The Eurozone recovery strategy for Greece and other nations is relying on a export boom, to replace the lost spending arising from the fiscal austerity. Even if net exports turn positive and more than offset the loss of government net spending, there is no guarantee that the Greek economy will resume growth.

Answer: True

• 3. A falling wage share in national income, which has been a characteristic trend in many nations over the neo-liberal period, does not guarantee declining real standards of living for workers.

Answer: True