Quiz #3 answers

• The only essential requirement for a sovereign currency is

Answer: that it is the only unit in which tax obligations to the government can be extinguished.

Explanation: Go to Koala Notes currency for more information.

• If the national government has been paying off debt

Answer: its capacity to expand the economy should a recession arise is unaltered.

Explanation: Go to On things nautical for more information.

• Taxation functions

Answer: to create sellers of real goods and services, so that the government can spend its otherwise worthless currency.

Explanation: Go to A simple business card economy for more information.

• The federal stimulus package will fail

Answer: if it goes into the hands of people who merely save it.

Explanation: Go to More journalistic nonsense! for further information.

• Trade unions who advocate shorter hours (work sharing) as a national solution to rising unemployment

Answer: are working against their members interests unless the workers total incomes are maintained and they persuade the government to run deficits sufficient to fill the spending gap.

Explanation: Go to Shorter hours or layoffs? for further information.