Quiz #463
- 1. When an economy is running a current account deficit, only one of the two remaining sectors (government or private domestic) can be in surplus, irrespective of the GDP growth rate.
- 2. Unlike a household, which not only has to service its debt obligations over the course of the loan but also has to repay them at the due date, a national government debt, which issues its own currency can always roll over its "own currency" debt obligations and never has to pay them back.
- 3. Over the last two decades, there have been major redistributions of national income towards profits in many nations. This has occurred as a result of the suppression of real wages growth.
Quiz #463 answers
- 1. When an economy is running a current account deficit, only one of the two remaining sectors (government or private domestic) can be in surplus, irrespective of the GDP growth rate.
Answer: True
- 2. Unlike a household, which not only has to service its debt obligations over the course of the loan but also has to repay them at the due date, a national government debt, which issues its own currency can always roll over its "own currency" debt obligations and never has to pay them back.
Answer: False
- 3. Over the last two decades, there have been major redistributions of national income towards profits in many nations. This has occurred as a result of the suppression of real wages growth.
Answer: False