The Weekend Quiz – February 27-28, 2016

Welcome to The Weekend Quiz, which used to be known as the 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 #362

• 1. A national government which issues its own floating currency is never vulnerable for financial reasons to defaulting on its own outstanding debt.
• False
• True
• 2. If the household saving ratio rises and there is an external deficit, then Modern Monetary Theory tells us that the government must increase net spending to fill the private spending gap or else national output and income will fall.
• False
• True
• 3. Quantitative easing and an expansion of net public spending both add net financial assets to the non-government sector but the former aims to stimulate demand by lowering interest rates while the latter policy choice directly adds spending to the economy.
• False
• True

Sorry, quiz 362 is now closed.

You can find the answers and discussion here