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 – June 27, 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 #327
- 1. If the government achieves in reducing its net spending by say $10 billion, the net financial assets destroyed by this fiscal withdrawal could be replaced by the central bank engaging in a $10 billion quantitative easing program.
- False
- True
- 2. When a country runs an external surplus, the national government can safely run a fiscal surplus without impeding economic growth.
- False
- True
- 3. Which fiscal deficit outcome is the most expansionary?
- 1 per cent of GDP
- 2 per cent of GDP
- 3 per cent of GDP
- It depends on the decomposition of the structural and cyclical (automatic stabiliser) components
Sorry, quiz 327 is now closed.
You can find the answers and discussion here
Good ‘ole 2/3
3/3
Studied hard for it.
Even got the 2 sectoral balances ones correct this time even if question 3 was a reasoned lucky guess.
3 outta 3 🙂
As to Q2, even spending after full capacity may increase NOMINAL GDP, just that inflation.
So the answer is no. 😉