Quiz #323

• 1. The operation of the automatic stabilisers built into the fiscal parameters (tax rates, income support etc) always supports growth
• False
• True
• 2. Continuous fiscal deficits are more likely to present an inflation risk than one-off deficits designed to meet a short-term private spending decline.
• False
• True
• 3. To maintain financial stability, the monetary base has to be driven by changes in the money supply just as the money multiplier in mainstream macroeconomics textbooks explains.
• False
• True

Quiz #323 answers

• 1. The operation of the automatic stabilisers built into the fiscal parameters (tax rates, income support etc) always supports growth

Answer: False

• 2. Continuous fiscal deficits are more likely to present an inflation risk than one-off deficits designed to meet a short-term private spending decline.

Answer: False

• 3. To maintain financial stability, the monetary base has to be driven by changes in the money supply just as the money multiplier in mainstream macroeconomics textbooks explains.

Answer: False