1. When economic growth resumes, the automatic stabilisers work to reduce government spending and increase taxes, which ensures that the government fiscal balance returns to its appropriate level.

2. Only one of the following propositions is possible (with all balances expressed as a per cent of GDP):

None of the above are possible as they all defy the sectoral balances accounting identity.
A nation can run a external deficit accompanied by a government sector surplus that is larger, while the private domestic sector is spending less than they are earning.
A nation can run a external deficit accompanied by a government sector surplus of equal size, while the private domestic sector is spending more than they are earning.
A nation can run a external deficit accompanied by a government sector surplus of equal size, while the private domestic sector is spending less than they are earning.

3. Broad money is a multiple of the monetary base which is what the money multiplier concept explains.