Quiz #309 answers

• 1. By defining full employment at levels above the minimum unemployment rate that could be sustained in any nation, organisations such as the IMF and the OECD, generate estimates of structural fiscal deficits that are biased downwards.

Answer: False

• 2. When a sovereign government issues debt it logically:

Answer: has no impact on the overall holdings of assets held by the non-government sector $-for-$.

• 3. Under a fiat monetary system, the absence of currency convertibility means:

Answer: that the government can motivate people to exchange goods and services in return for public spending by charging a fixed fee in the local currency for leaving one's home each day.