1. An external surplus is a necessary but not sufficient condition for a nation that wishes to grow during a period of fiscal surpluses and private domestic deleveraging.

Answer: True

2. When a nation's fiscal deficit is declining it tells us that the government has fallen into an austerity mindset.

Answer: False

3. The only way a nation can reduce its public debt ratio (short of defaulting) is for the government to start running primary fiscal surpluses (that is, when spending net of interest payments is less than taxation revenue).

Answer: False