The Weekend Quiz – September 15-16, 2018

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

* This week (Tuesday, September 11, 1973) marked the 45th Anniversary of the day when right-wing forces aided by the US overthrew the democratically elected government Chile. It was a terrorist act we should continue to remember like other terrorist acts!

Quiz #495

• 1. The IMF use their estimates of the Non-Accelerating Inflation Rate of Unemployment (NAIRU) to calibrate their structural deficit estimates. Accordingly, the structural deficits will typically be:
• difficult to assess because their forecasts are highly inaccurate
• biased downwards.
• biased upwards.
• 2. Under a fiat monetary system, the absence of currency convertibility means that:
• the currency is only convertible into government bonds rather than gold.
• government can induce us to offer goods and services in return for public spending by fining us for walking down streets.
• there is no reason for people to hold currency as a hedge against gold price falls.
• 3. Only one of the following statements can be true when you observe rising government bond yields for new issues:
• Government spending is becoming more expensive.
• Bond prices are falling in response to demand.
• Government spending is increasing the cost of borrowing for private investors.

Sorry, quiz 495 is now closed.

You can find the answers and discussion here