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…
The Weekend Quiz – March 30-31, 2019
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.
Quiz #523
- 1. Larger fiscal deficits as a percentage of GDP typically mean that there are less real resources available for other productive uses.
- True
- False
- 2. For a nation running a current account deficit, income adjustments will ensure government fiscal position is in deficit if the domestic private sector seeks to increase its saving overall as a percentage of GDP.
- True
- False
- 3. Higher levels of taxation permit the government to increase its real spending.
- True
- False
Sorry, quiz 523 is now closed.
You can find the answers and discussion here
2 outa 3 again! Q1 wrong. Sigh.
Crap, reading too many of the “criticisms” of MMT made me daft and miss two questions. I may link to this questionnaire as an example of how there’s a lot more to it than “deficits don’t matter”.
“2 outa 3 again! Q1 wrong. Sigh.”
But why.
[Bill edited out spoiler hints – please leave your conjectures until after everyone has had a chance]
It’s Q3 three that did me in.
I forgot that although taxes don’t fund spending, they do free up resources for the government to buy.
Sorry Bill
I’m having a fuzzy day. I didn’t think about that
Philip R – generally, what can make these questions tricky is that macroeconomics requires thinking about different ramifications. The tendency to think in binary terms often results in misunderstanding. This often catches me out.
I got 3 out of 3 right! YAHOO!!!!!