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 – June 18-19, 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 #378
- 1. Larger fiscal deficits as a percentage of GDP typically mean that there are less real resources available for other productive uses.
- False
- True
- 2. For a nation running a current account deficit, national income adjustments will ensure government fiscal balance is in deficit if the domestic private sector seeks to increase its saving overall as a percentage of GDP.
- False
- True
- 3. If the central bank pays a positive interest rate on excess bank reserves then it no longer has to conduct open market operations to ensure a non-zero target policy rate is sustained.
- False
- True
Sorry, quiz 378 is now closed.
You can find the answers and discussion here
More needs to be done to de-mystify Economics for the ordinary worker. The Workers Educational Association some years ago was attempting to do that job and so was the Trade Union Training Authority, I think this sort of education needs to be revived for the 21 st century.
Before risking a nervous breakdown by answering these quiz questions I thought to ask a few questions about the questions. For question #1- should I assume the economy is typically in a state of full employment or near to that? Question #2- should I assume that the private domestic sector is in fact overall saving to begin with, rather than dis-saving? Question #3- should I assume that the central bank’s target rate is the same as the rate of interest that they are paying on excess reserves?
Although my psychiatrist advises me not to answer the quiz questions anymore, I am confident that, with a few clarifying pre-questions, I should be able to complete the quizzes while remaining in a somewhat stable mental equilibrium.
As always, Thanks for the quiz! Love to hate it. Just kidding about all that psychiatrist stuff. Mostly.