1. Only one of the following propositions is possible (with all balances expressed as a per cent of GDP):

A nation can run an external deficit and equal government surplus while the private domestic sector is saving overall.
A nation can run an external deficit and equal government surplus while the private domestic sector is dis-saving overall.
A nation can run an external deficit and a larger government surplus while the private domestic sector is saving overall.
None of the above are possible as they all defy the sectoral balances accounting identity.

2. The more funds that commercial banks have on account with the central bank the more they can lend out to customers.

3. Modern Monetary Theory (MMT) considers that the public debt ratio is of no concern because economic growth will always bring it down after a recession.