Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern…
Saturday Quiz – February 4, 2012
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 questions. Your results are only known to you and no records are retained.
- 1. The distribution of national income has shifted in most advanced nations over the last two decades in favour of profits. This trend will only stabilise if workers can secure wage increases in line with the growth of labour productivity.
- 2. The ratio of the broad measure of the money supply (M2) to the monetary base has fallen dramatically in the US in recent years. This tells us that the mainstream macroeconomics concept of the money multiplier is false.
- 3. The real spending capacity of a currency-issuing government is constrained by the tax revenue it generates.
- 4. In its latest World Economic Outlook Update (issued January 2012), the IMF said that "countries should let automatic stabilizers operate freely for as long as they can readily finance higher deficits". In general, the IMF estimates of these automatic stabilisers are biased upwards.
- 5. Premium Question: Under current public sector debt-issuance arrangements (where sovereign governments match their deficits with issues of debt), the government and the private domestic sectors can simultaneously reduce their debt levels.
Sorry, quiz 150 is now closed.
You can find the answers and discussion here
This Post Has 8 Comments
It was not this time, Mitchell…
I only got the premium question right!
Okay, I think I might know why I got 1,2 and 4 wrong, but i’m still stuck on 3.
Bill, you’re a very sly fox!
Hmm, 80%. Not bad for a first try. Mind you, some were just well educated guesses, and in light of that I should have 3 right… darn.
Baffled why I got 3 wrong, so I can only assume it was a typing mistake… I’m going to claim 100%.
in regards to question 3, i thought a currency issuer did not need taxes to spend? whats the deal?
I got #3 wrong and I hope it’s about how much is in the question and how much is assumed, e.g. “sovereign monopolistic issuer” is omited.