Saturday Quiz – March 28, 2015

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 #314

  • 1. The price at which the central bank provides reserves to the commercial banks is restricted by its target monetary policy rate.
    • False
    • True
  • 2. If all national governments simultaneously run public surpluses then it is not possible for all their private domestic sectors to save overall.
    • False
    • True
  • 3. From the US National Accounts, you find that in 2006, the share of Personal consumption expenditure in real GDP was 69.9 per cent and by 2008 it had fallen to 69.8 per cent. Similarly, the share of Gross private domestic investment on real GDP was 17.2 per cent in 2006 and by 2008 had fallen to 14.9 per cent (and further to 11.8 per cent in 2009). The net export deficit over the same period (2006 to 2008) fell from -5.7 per cent of real GDP to -4.9 per cent in 2008. Finally, the share of Government consumption expenditures and gross investment in real GDP rose from 18.8 per cent in 2006 to 18.9 per cent in 2008 (and 19.7 per cent in 2009). These relative changes tell you that real GDP was lower in 2008 compared to 2006 because the increase in Government spending and the falling negative contribution of net exports were not sufficient to offset the declining contribution from consumption and investment.
    • False
    • True

Sorry, quiz 314 is now closed.

You can find the answers and discussion here

This Post Has One Comment

  1. Just wondering what is happening with YV at the moment.

    There’s rumours of his resignation/sacking. But , denied!

    http://www.telegraph.co.uk/finance/economics/11499082/Greece-denies-Varoufakis-resignation-rumours.html

    We could possibly dismiss these kinds of reports as idle gossip. Except: YV has recently restarted his blog after over a month of silence and a recent posting is now missing.

    http://yanisvaroufakis.eu/2015/03/20/of-greeks-and-germans-re-imagining-our-shared-future/

    Presumably YV has deleted it. Voluntarily? It’s still available at:

    http://www.nakedcapitalism.com/2015/03/yanis-varoufakis-greeks-germans-re-imagining-shared-future.html

    I seems OK to me but then I’m biased. Maybe he was wrapped on the knuckles for implicitly accusing the Germans for “misleading peoples and Parliaments by presenting a bank bailout as an act of ‘solidarity to Greece'”?

    They’d done exactly that, of course. And everything else that was alluded to in the article. So, is the truth no defence ?

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