Quiz #417 answers

• 1. The automatic stabilisers built into national government fiscal policy operate in a counter-cyclical manner.

Answer: True

• 2. To ensure that the financial system is stable, the central bank has to allow the money supply to be driven by the monetary base.

Answer: False

• 3. The spending by a sovereign government becomes more expensive when the bond markets push yields on new bond issues up.

Answer: False