1. A fact that is overlooked by those promoting austerity programs, is that when economic growth resumes, the automatic stabilisers work in a counter-cyclical fashion and ensure that the government fiscal balance returns to its appropriate level.
Answer: False
2. From a monetary perspective, it would be impossible for a central bank to directly purchase Treasury debt to facilitate a national government's fiscal deficit while still targeting a non-zero policy rate.
Answer: False
3. . Rising government bond yields for new issues indicate:
Answer: Answers (b) and (d) depending on the situation.