Quiz #685

• 1. Larger fiscal deficits as a percentage of GDP typically mean that there are less real resources available for other productive uses.
• False
• True
• Maybe
• 2. For a nation running an external deficit, income adjustments will ensure that the government fiscal balance is in deficit if the domestic private sector is saving overall as a percentage of GDP.
• False
• True
• 3. Higher levels of taxation revenue ultimately permit the government to spend more.
• False
• True

Quiz #685 answers

• 1. Larger fiscal deficits as a percentage of GDP typically mean that there are less real resources available for other productive uses.

Answer: True

• 2. For a nation running an external deficit, income adjustments will ensure that the government fiscal balance is in deficit if the domestic private sector is saving overall as a percentage of GDP.

Answer: True

• 3. Higher levels of taxation revenue ultimately permit the government to spend more.

Answer: True