Quiz #664 answers

• 1. Like anything in abundance, the value of the currency has to decline when there is more of circulating in the economy.

Answer: False

• 2. A fiscal rule at the national government level that required its fiscal balance to be in balance at all times would eliminate swings in the balance driven by the automatic stabilisers.

Answer: False

• 3. The private domestic sector will save overall even with a government fiscal surplus as long as net exports are positive.

Answer: False