Quiz #484

• 1. Irrespective of what the government does, the private domestic sector can save overall, as long as the net exports are positive.
• False
• True
• 2. A rising government deficit indicates that the government fiscal stance is becoming more expansionary.
• False
• True
• 3. The logic of the Greek bailout packages is to force the government to run primary fiscal surpluses. This is because posting primary surpluses is the only way to reduce Greece's public debt ratio.
• False
• True

Quiz #484 answers

• 1. Irrespective of what the government does, the private domestic sector can save overall, as long as the net exports are positive.

Answer: False

• 2. A rising government deficit indicates that the government fiscal stance is becoming more expansionary.

Answer: False

• 3. The logic of the Greek bailout packages is to force the government to run primary fiscal surpluses. This is because posting primary surpluses is the only way to reduce Greece's public debt ratio.

Answer: False