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 – May 24, 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 #270
- 1. Private households, in aggregate, cannot save if a nation's external sector is in balance (and thus making no contribution to real GDP growth) and the government runs a balanced budget.
- False
- True
- 2. If we observed yields on 10-year government bond yields rising, we could not categorically state that bond markets are demanding increased risk premiums for these assets.
- False
- True
- 3. Continually expanding the money supply will inevitably be inflationary.
- False
- True
Sorry, quiz 270 is now closed.
You can find the answers and discussion here
Bill:
I am greatly enjoying Randall’s recent set of blogs covering the “taxes drive money” paradigm. I’ve hit upon the notion that this may be the way for me to introduce people (in my investment groups here in the Florida retirement community) into MMT concepts, something that I have struggled with over the years. One of Warren’s friends had instructed me to go light on bold concepts such as “governments are not funded by taxation” or “bond issuance is voluntary” as they often lead to hysterical responses from the mainstream – particularly those who quote the Austrians and/or Ayn Rand. “Better not spook the horses …” was the exact quote, I believe.
Melia Sese says:
Saturday, May 24, 2014 at 10:00
I agree with the concept to not “spook the horses”, anyone have some suggestions that they have had success with ?