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…
The Weekend Quiz – May 21-22, 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 #374
- 1. Mainstream economists use the notion of "crowding out" to argue that public spending squeezes out private spending and results in a less efficient allocation of resources overall. Modern Monetary Theory (MMT) denies that crowding out can occur.
- False
- True
- 2. A rising government deficit will always allow the private domestic sector to increase its saving in nominal terms.
- False
- True
- 3. If government net spending increases (rising fiscal deficit) then the policy stance is becoming more expansionary and the only risk is that nominal aggregate spending growth might exceed the real capacity of the economy to respond by increasing real output and cause inflation.
- False
- True
Sorry, quiz 374 is now closed.
You can find the answers and discussion here
2/3 ….. I was more certain of the last question but thats the one I got wrong
@Mark, I suppose that the key here is in “the only risk”. I imagine that if that was true the answer to the first question should be false.
I did 3/3 this time but it’s not the norm.
I had the chance to joke with Professor Mitchell the other day, in his book presentation in Barcelona, about my hidden neoliberal trends affecting my performance in his quiz.
Maybe you are a cryptoneoliberal like me 😉
same here