The Weekend Quiz – December 10-11, 2016

Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention or not to the blogs I post. See how you go with the following questions. Your results are only known to you and no records are retained.

Quiz #403

  • 1. A program of fiscal austerity (pushing towards surplus) will always undermine attempts by the private domestic sector to reduce its indebtedness when a nation external balance is in deficit.
    • False
    • True
  • 2. A rising level of bank reserves will make it easier for banks to expand credit to the private sector if the demand for loans increases.
    • False
    • True
  • 3. The public debt ratio is of no concern because economic growth will always bring it down after a recession.
    • False
    • True

Sorry, quiz 403 is now closed.

You can find the answers and discussion here

This Post Has 4 Comments

  1. No. 3 seemed like the “trick question”. I got it right, but to be honest, was teetering on the brink for a while.
    .
    As always, the explanations will be very instructive, I’m sure.

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