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 – December 16-17, 2017
Welcome to The Weekend 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 #456
- 1. Although we are told that a country is running a small current account deficit and that the private domestic sector is saving overall, we are unable to draw any conclusions about the state of the fiscal balance until we know the relative magnitudes of the other balances.
- False
- True
- 2. While a currency-issuing government does not have to issue bonds to match its deficit spending, one of the advantages of raising debt from the private sector is that it provides a boost to private wealth.
- False
- True
- 3. Fiscal austerity aims to reduce the stock of net government spending by reducing spending and/or increasing taxes.
- False
- True
Sorry, quiz 456 is now closed.
You can find the answers and discussion here
1 out of 3. ………sausages !
2 out of 3……. chicken wings !
Dear Barri and AndyB
I appreciate your comments, feedback etc but please can you express your disappointments in strictly vegetarian terms. (-:
best wishes
bill
ps: I appreciate that the sausages might have been made of soya products. I definitely hope that was the case.
2/3
You will be relieved to learn Bill that I only consume Linda McCartney’s bangers. As it were.
1 out of 3…homemade almond milk!
Re: Question two. Given that dollar for dollar deficit spending results in additional savings in the private sector, if all those Treasuries represent this identity, then those who buy the Treasuries benefit not only from an increase in safety for their private savings, but interest income as well. A little confused.
Me too Chris.
Will be going through 2 and 3 answers with a fine toothcomb
I’m happy that “stock” leapt out at me in question 3…
OTOH, in question 2, it seemed me that “advantage” could be subjective…so I answered true…
Oh missed the silly stock flow thing again. Doh!
Just 2 out of 3.
But, looking on the bright side, I did get the anti-spam maths answer correct!
3/3 quite chuffed that I think I tuned into Bill’s ‘trick phrasing’ this week.
Compensated for last weeks 1/3
Don’t do yourself down Mr. Shigemitsu! I consider 2/3 very respectable.