The Weekend Quiz – September 7-8, 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 #546

• 1. If the external sector overall is in deficit, it is still possible for the private domestic sector and government sector to run surpluses as long GDP growth is fast enough (the technical condition is that the rate of GDP growth has to be faster than the real interest rate).
• False
• True
• 2. Federal government debt (where there is currency sovereignty) is not really a liability because the government can just roll it over continuously and thus they never have to pay it back. This is different to a household, which not only has to service its debt but also has to repay them at the due date.
• False
• True
• 3. The term "beggar-my-neighbour" strategy describes a situation where a nation pushes its excess supply onto its trading partners is more applicable to Germany than China in the current situation.
• False
• True

Sorry, quiz 546 is now closed.

You can find the answers and discussion here