Quiz #409

• 1. A program of fiscal austerity which yields a fiscal surplus will always undermine attempts by the private domestic sector to save overall when the nation's exports are less than the sum of their imports and net income flows.
• False
• True
• 2. The more funds that commercial banks have on account with the central bank the greater is their capacity to provide loans to customers.
• False
• True
• 3. If governments sought funding from the central bank for their net spending (deficits) rather than private bond markets then the inflation risk of such spending would remain unchanged.
• False
• True

Quiz #409 answers

• 1. A program of fiscal austerity which yields a fiscal surplus will always undermine attempts by the private domestic sector to save overall when the nation's exports are less than the sum of their imports and net income flows.

Answer: True

• 2. The more funds that commercial banks have on account with the central bank the greater is their capacity to provide loans to customers.

Answer: False

• 3. If governments sought funding from the central bank for their net spending (deficits) rather than private bond markets then the inflation risk of such spending would remain unchanged.

Answer: True