The Weekend Quiz – July 28-29, 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 #488

• 1. If we observe rising yields on 10-year government bond yields then we can safely conclude that bond investors are demanding increased risk premiums for these assets.
• False
• True
• 2. If a nation that is running an on-going external deficit is to avoid a recession, then the government spending (relative to taxation) has to rise if the household saving ratio rises.
• False
• True
• 3. While a currency-issuing government does not have to issue debt to fund its deficit spending, the debt-issuance does reduce the inflation risk associated with the deficits.
• False
• True

Sorry, quiz 488 is now closed.

You can find the answers and discussion here