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 – June 15-16, 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.
- 1. Bank reserves are maintained to ensure that all the cheques written every day clear when presented. If a bank doesn't have enough reserves then cheques drawn against it will bounce.
- 2. The crucial difference between a monetary system based on the gold standard world and a fiat currency monetary is that under the former system:
- excessive national government spending led to inflation.
- the national government had to issue debt to cover spending above taxation.
- the national government could not use net spending to achieve full employment.
- 3. When the national government's fiscal balance moves into deficit:
- One cannot conclude anything about the government's policy intentions.
- (a) and (b)
- It is a sign that the government is worried that unemployment is rising.
- It is a sign that the government is trying to stimulate the economy.
Sorry, quiz 534 is now closed.
You can find the answers and discussion here
This Post Has 9 Comments
3/3 for two weeks in a row!!!!!!!
Me too Phil! God I’m good!
We’ll pay for this next week.
Bill will decide the questions are too easy.
I’d basically given up on the quiz as I couldn’t get the language of economics clearly understood in my head.
But I tried again and got 3/3 today
Must’ve been easier to guess this week.
Friends (and I think everyone here is my friend), please see my recent comment on Part 2 from this last Wed. About inflation in stock prices and in house prices doesn’t seem to worry MS economists.
Or even core MMTers for that matter. Tell me why this is so. please.
@steve_American: “inflation in stock prices and in house prices doesn’t seem to worry MS economists.
Or even core MMTers for that matter”.
Bear in mind elevated house and share prices (bubble territory) are likely considered ‘good’ by some in the MS (and the Oz govt. is doing everything it can to maintain high housing prices); whereas MMT’ers would see them as problematic. So I guess you need to consider inflation in different sectors?
So, you’re saying that MS economists are being 2 faced when they complain that MMT will result in “Inflation”, but want high “inflation” in house and stock prices.
And all the while never saying it clearly.
Maybe you’re right.
My first 100!