Quiz #666 answers

• 1. In most nations at present, both the government and the private domestic sectors are carrying historically large debt ratios. However, under current public sector debt-issuance arrangements, only one of these sectors can reduce its debt level at a time.

Answer: False

• 2. Workers can enjoy a stable share of GDP over time if their money wages increase in line with labour productivity.

Answer: False

• 3. The tax revenue a government receives constrains the real spending capacity of a sovereign government.

Answer: True