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…
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. Modern Monetary Theory tells us that a sovereign national government can run deficits without issuing debt. But the debt issuance allows the government to drain demand (private spending capacity) so that the public spending has more non-inflationary room to work within.
- 2. Workers enjoy a stable share of GDP over time if they secure wage increases in line with labour productivity.
- 3. The ratio of the "stock of money" (currency plus demand deposits) to bank reserves fell dramatically in the US in 2008 and been variable since that time. This phenomenon is best explained by a variable money multiplier.
Sorry, quiz 535 is now closed.
You can find the answers and discussion here