Quiz #610

• 1. A nation can run a government sector surplus, which is larger as a proportion to GDP than the external deficit, while the private domestic sector is spending more than they are earning.
• False
• True
• 2. The automatic stabilisers built into national government fiscal policy always operate in a counter-cyclical manner.
• False
• True
• 3. Sovereign government spending becomes more costly when the bond markets push yields on new public bond issues up.
• False
• True

Quiz #610 answers

• 1. A nation can run a government sector surplus, which is larger as a proportion to GDP than the external deficit, while the private domestic sector is spending more than they are earning.

Answer: True

• 2. The automatic stabilisers built into national government fiscal policy always operate in a counter-cyclical manner.

Answer: True

• 3. Sovereign government spending becomes more costly when the bond markets push yields on new public bond issues up.

Answer: False