The Weekend Quiz – July 21-22, 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 #487

  • 1. As a matter of accounting, the net financial assets held by the non-government sector rise $-for-$ when a sovereign government issues debt.
    • False
    • True
  • 2. In a fiat monetary system (for example, US or Australia) with an on-going external deficit that exceeds the public deficit (expressed as percentages of GDP), the private domestic sector cannot reduce its overall debt levels (by overall saving) without incurring employment losses.
    • False
    • True
  • 3. The imposition of fiscal rules which aim to limit the discretionary capacity of governments to net spend bias fiscal policy towards counter-cyclical responses when private spending is weak.
    • False
    • True

Sorry, quiz 487 is now closed.

You can find the answers and discussion here

This Post Has 5 Comments

  1. It took me four reads to figure out the sentence that is question three. Then I still got it wrong!

  2. 2 out of 3 again, but I quickly realised where I went wrong on Q2. Just needed a pen and paper to scribble on. It doesn’t come naturally… yet 🙂

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