Quiz #560

• 1. The use of a fiscal surplus to create a sovereign fund provides a currency-issuing government with greater spending capacity in the future.
• False
• True
• 2. If employment growth matches the pace of growth in the working age population (people above 15 years of age) then the economy will experience a constant unemployment rate as long as participation rates do not change.
• False
• True
• 3. In a fiat monetary system with an on-going external deficit, the domestic private sector cannot save overall, if the national government runs a fiscal deficit.
• False
• True

Quiz #560 answers

• 1. The use of a fiscal surplus to create a sovereign fund provides a currency-issuing government with greater spending capacity in the future.

Answer: False

• 2. If employment growth matches the pace of growth in the working age population (people above 15 years of age) then the economy will experience a constant unemployment rate as long as participation rates do not change.

Answer: True

• 3. In a fiat monetary system with an on-going external deficit, the domestic private sector cannot save overall, if the national government runs a fiscal deficit.

Answer: False