Saturday Quiz – March 22, 2014

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 #261

• 1. When a currency-issuing government voluntarily constrains itself to borrow from the private sector to cover its deficit spending, it logically reduces the funds available for private investment expenditure.
• False
• True
• 2. An increasing fiscal deficit tells us nothing about the government's policy intentions.
• False
• True
• 3. The crucial difference between a monetary system based on the convertible currency backed by gold and a fiat currency monetary is that under the former system:
• excessive national government spending led to inflation.
• the national government had to issue debt to cover spending above taxation.
• the national government could not use net spending to achieve full employment.

Sorry, quiz 261 is now closed.

You can find the answers and discussion here