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