Quiz #367 answers

• 1. The only time that fiscal surplus represents increased national savings is when the government creates a sovereign fund.

Answer: False

• 2. The massive build-up of Chinese holdings of US government debt indicates that Chinese investors have been funding the US government deficits.

Answer: False

• 3. If employment growth matches the pace of growth in the civilian population (people above 15 years of age) then the economy will experience a constant unemployment rate as long as participation rates do not change.

Answer: True