Time for a quiz!

To see who has been paying attention, let's have a little quiz. This is from a presentation given by UMKC professor Randall Wray in 2012. See the full presentation below or click here.

True or False?

1. Just like a household, a government has to finance its spending out of its income or through borrowing.
2. The role of taxes is to provide finance for government spending.
3. The National Government borrows money from the private sector to finance the budget deficit.
4. By running budget surpluses the government takes pressure off interest rates because funds are then available for private sector investment projects.
5. Persistent budget deficits will burden future generations with inflation and higher taxes.
6. Running budget surpluses now will help build up the funds necessary to cope with the ageing population in the future.