Saturday Quiz – December 18, 2010

Welcome to the billy blog Saturday quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following five questions. Your results are only known to you and no records are retained.

Quiz #91

• 1. The use of a budget surplus to create a sovereign fund provides the government with more spending options in the future.
• True
• False
• Maybe
• 2. Fiscal rules ultimately fail to deliver the announced budget targets because the government does not control the budget outcome.
• True
• False
• Maybe
• 3. If employment growth matches the pace of growth in the working age population (people above 15 years of age) then the economy will experience a constant unemployment rate as long as participation rates do not change.
• True
• False
• Maybe
• 4. In a fiat monetary system (for example, US or Australia) with an on-going external deficit, the domestic private sector can reduce its overall debt levels (by saving) without employment losses, if the national government supports the private de-leveraging process by running a budget deficit.
• True
• False
• Maybe
• 5. Premium Question: The monetary base always adjusts to changes in the money supply.
• True
• False
• Maybe if the central bank imposes reserve requirements

Sorry, quiz 91 is now closed.

You can find the answers and discussion here