The Weekend Quiz – July 7-8, 2018

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 #485

  • 1. Modern Monetary Theory (MMT) recognises that the unemployed live of the hard work of those that are employed.
    • False
    • True
  • 2. The accumulated spending build-up of annual fiscal deficits does not pose an inflation threat.
    • False
    • True
  • 3. Which scenario represents a more expansionary outcome: (a) A fiscal deficit equivalent to 5 per cent of GDP (including the impact of automatic stabilisers equivalent to 3 per cent of GDP). (b) A fiscal deficit equivalent to 3 per cent of GDP. (c) You cannot tell because you do not know the decomposition between the cyclical and structural components in Option (b)
    • Option (a)
    • Option (b)
    • Option (c)

Sorry, quiz 485 is now closed.

You can find the answers and discussion here

This Post Has 6 Comments

  1. First question made me physically unwell, so i felt compelled, even obliged, to deliberately choose the wrong answer.

  2. If MMT recognises that Taxes do not “fund” government spending, then I find it difficult to generally accept that question one is true. Except if in this case, “hard work of the employed” is interpreted as,” contribution to productive output.”

  3. It’s a mark of how subtle these questions can be that I had to think about #1.

  4. 2 out of 3. I got question 1 right but I would like to throw out there that Adam Smith had his dinner cooked by his mum and my husband can work the hours he does cause I wash his undies.

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