1. If a nation records an external balance (net exports equal zero) and the government runs a balanced fiscal position then we know that private domestic sector spending will be equal to its overall income and household saving will be zero.

Answer: False

2. The standard of living of workers falls if growth in real wages fails to keep pace with labour productivity growth.

Answer: False

3. Rising private domestic saving overall signals the need for an expanding public deficit to avoid employment losses.

Answer: False