Saturday Quiz – April 26, 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 #266

• 1. Assume that a nation is running an external deficit of 2 per cent of GDP. Under these circumstances, whether the public sector records a deficit or not depends on how large a surplus the private domestic sector records.
• False
• True
• 2. It has been argued that if the fiscal rules in the Eurozone were abandoned, and the automatic stabilisers in the Member-State fiscal positions were allowed to operate unfettered, then they would return the government fiscal balance to its appropriate level once growth returns following a downturn.
• False
• True
• 3. The government has to issue debt if the central bank is targetting a non-zero policy rate and is reluctant to pay a return on excess bank reserves.
• False
• True

Sorry, quiz 266 is now closed.

You can find the answers and discussion here