Saturday Quiz – November 8, 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 #294

• 1. If there is an external deficit of 2 per cent of GDP and the government balances its fiscal position then the private sector will have a an excess of spending relative to its income equal to 2 per cent of GDP.
• False
• True
• 2. By draining funds out of the system, government borrowing from the private sector reduces the risk that public deficit spending will overheat the economy.
• False
• True
• 3. Even Modern Monetary Theory (MMT) accepts the proposition that continually expanding the money supply will inevitably be inflationary.
• False
• True

Sorry, quiz 294 is now closed.

You can find the answers and discussion here