Quiz #316 answers

• 1. What conservatives fail to understand is the public debt to GDP ratio always falls once economic growth resumes.

Answer: False

• 2. A nation can run an external deficit accompanied by a government sector surplus of equal proportion to GDP, while the private domestic sector is spending more than they are earning.

Answer: True

• 3. The monetary base of an economy adjusts to changes in the money supply not the other way around.

Answer: True