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 – March 17, 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.
Quiz #156
- 1. We are told that a country is running a small current account deficit and that the private domestic sector is saving overall. However, until we know the relative magnitudes of these balances, we are unable to conclude the state of the fiscal balance.
- False
- True
- 2. Private sector wealth is invariant to the decision by government to issues bonds to match its deficit spending as against not issuing any bonds.
- False
- True
- 3. The stock of government spending continually rises when there are rising budget deficits.
- False
- True
- 4. To reduce trade deficits, Eurozone nations are seeking to restore export competitiveness (within the Eurozone) by domestic deflation (reducing domestic wages and prices relative to other nations) given they do not have a flexible exchange rate. Export competitiveness will rise if they are successful with this strategy.
- False
- True
- 5. Premium question: When a government records a budget surplus which means it is withdrawing more purchasing power from the economy than it is adding, we know that it is seeking to attenuate the growth in aggregate demand.
- False
- True
Sorry, quiz 156 is now closed.
You can find the answers and discussion here
OMG … my first 5 out of 5 … must be the Luck O’ The Irish!!! We have had St. Paddy’s brews here at the end of our (US) workday, and I’d like to thank the India Pale Ale for a refreshingly clear mind!!!! Bon Weekend Bill!!!!
Enjoy it while it lasts Marley…enjoy it while it lasts….
5 of 5. I want a T-shirt.
Got 4 wrong – i’m thinking fallacy of composition applies. Just about to look at Answers and Dsicussion to find out.
4 out of 5…every time. Doesn’t the issuance of bonds by a government augment private sector wealth by providing intrest income? Or is the assumption that money that would flow into gov’t bonds will go into other interest-bearing assets in the absence of bonds? Time to look at the discussion to find out.
Some day I will get a 5…I know it.