Quiz #563 answers

• 1. The government has two macroeconomic policy arms available - fiscal and monetary policy. However, it only has control over monetary policy

Answer: True

• 2. Americans enjoy a higher material standard of living as a result of the Chinese holdings of US government debt.

Answer: True

• 3. A strategy to force the government to maintain a balanced fiscal position that the private domestic sector has to be continuously accumulating debt unless the external account moves into surplus.

Answer: True