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…
Saturday Quiz – August 8, 2009
Welcome to the billy blog Saturday quiz. The quiz tests whether you have been paying attention over the last seven days.
See how you go with the following five questions. Your results are only known to you and no records are retained.
Quiz #20
- 1. Even though a national government is not revenue constrained, their surpluses can add to national saving if they arise from the private sector spending less than total GDP (income) produced.
- False
- True
- 2. The latest ABS data shows that total hours worked are falling relative to total persons employed which must mean that underemployment is replacing unemployment.
- False
- True
- 3. A single banks can rid itself of excess reserves held with the central bank by lending them into the Interbank market whereas a system-wide reserve excess can be eliminated if consumers withdraw their deposits and spend the money on real goods and services.
- False
- True
- 4. An understanding of modern monetary theory reveals that from a macroeconomic perspective the sovereign government only ever borrows funds that it has already previously spent.
- False
- True
- 5. If there is a current account deficit, and the domestic private sector seeks to increase its saving as a percentage of GDP, then income adjustments will ensure the government budget is in deficit.
- False
- True
Sorry, quiz 20 is now closed.
scroll down to find the answers and explanation below.
Quiz #20 answers
- 1. Even though a national government is not revenue constrained, their surpluses can add to national saving if they arise from the private sector spending less than total GDP (income) produced.
- 2. The latest ABS data shows that total hours worked are falling relative to total persons employed which must mean that underemployment is replacing unemployment.
- 3. A single banks can rid itself of excess reserves held with the central bank by lending them into the Interbank market whereas a system-wide reserve excess can be eliminated if consumers withdraw their deposits and spend the money on real goods and services.
- 4. An understanding of modern monetary theory reveals that from a macroeconomic perspective the sovereign government only ever borrows funds that it has already previously spent.
- 5. If there is a current account deficit, and the domestic private sector seeks to increase its saving as a percentage of GDP, then income adjustments will ensure the government budget is in deficit.
Answer: False
Explanation: You might read Debates in modern monetary macro or post a comment if you want further information.
Answer: False
Explanation: You might read The labour market barely hanging on or post a comment if you want further information.
Answer: False
Explanation: You might read Debates in modern monetary macro or post a comment if you want further information.
Answer: True
Explanation: You might read Why doesnt this attract headlines? or post a comment if you want further information.
Answer: True
Explanation: You might read How do budget deficits finance saving? or post a comment if you want further information.
Bill,
Sometimes during Saturdays, your blog becomes unreachable. This week was OK – mostly. Couple of more things
1. How can I use html formatting while commenting ? e.g., italics, bold fonts, hyperlinks ?
2. Can I keep track of comments – get notifications ?
Dear Ramanan
Sorry about your problems – except for the times I announce problems my server is very reliable.
1. HTML lesson – surround your text with the following tags:
<em>Italics</em>
<strong>Bold</strong>
<a href="https://billmitchell.org/blog">hyperlink</a> replacing the link with your intended link and hyperlink with something meaningful.
2. Comments: I just checked my set up to see if I can accommodate that and there is nothing that will do it automatically. I will investigate whether there are any plugins or whether I can hack the code myself to notify you of the same. I doubt it because many people give a false E-mail address which would cause a lot of issues. As to keeping track: the front page provides the last 10 comments by name and topic. Other than that you would have to cut and paste them yourself.
I hope that helps.
best wishes
bill