Quiz #429 answers

• 1. Modern Monetary Theory (MMT) teaches us that one of the dangers of public spending is that it can crowd out private spending.

Answer: True

• 2. National accounting shows us that a government surplus equals a non-government deficit. But that doesn't mean that if fiscal austerity ends up generating a fiscal surpluses that households and firms will be running deficits.

Answer: True

• 3. Real wage cuts under austerity programs could increase the wage share.

Answer: True