Quiz #351

• 1. For the US private sector to reduce its overall overall debt levels, the government must run a deficit.
• False
• True
• 2. Larger fiscal deficits as a percentage of GDP reduce the local productive resources that are available to the private sector.
• False
• True
• 3. A national government that issues its own currency and freely floats it on foreign markets never faces a risk of insolvency.
• False
• True

Quiz #351 answers

• 1. For the US private sector to reduce its overall overall debt levels, the government must run a deficit.

Answer: False

• 2. Larger fiscal deficits as a percentage of GDP reduce the local productive resources that are available to the private sector.

Answer: True

• 3. A national government that issues its own currency and freely floats it on foreign markets never faces a risk of insolvency.

Answer: False