The Weekend Quiz – March 26-27, 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 #366

• 1. A fact that is overlooked by those promoting austerity programs, is that when economic growth resumes, the automatic stabilisers work in a counter-cyclical fashion to ensure that the government fiscal balance returns to its appropriate level.
• False
• True
• 2. Rising government bond yields for new issues indicate:
• Answers (a) and (d) depending on the situation.
• that private investors consider public debt to be riskier.
• that government spending is increasing the cost of borrowing for private investors.
• that economic growth is reducing private risk assessments of alternative financial investments.
• that government spending is becoming more expensive.
• Answers (b) and (d) depending on the situation.
• 3. When the national government's fiscal balance moves into surplus:
• it is a sign that the government is trying to constrain economic activity.
• it is a sign that the government is worried that inflation is rising.
• you cannot conclude anything about the government's policy intentions.
• Options (a) and (b).

Sorry, quiz 366 is now closed.

You can find the answers and discussion here