Quiz #588 answers

• 1. National accounting shows us that a government surplus equals a non-government deficit. If fiscal austerity does generate fiscal surpluses it does so by swapping public for private debt.

Answer: False

• 2. In a stock-flow consistent macroeconomics, the sectoral balance stocks all sum to zero.

Answer: False

• 3. Public spending can "crowd out" private spending.

Answer: True