The Weekend Quiz – November 23-24, 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 #557

• 1. Continuous fiscal deficits are more likely to present an inflation risk than one-off deficits designed to meet a short-term private spending decline.
• False
• True
• 2. A nation running an external deficit accompanied by a government sector surplus (of equal proportion to GDP as the external deficit) will soon be in recession unless the private domestic sector is willing to continually increase its overall indebtedness.
• False
• True
• 3. To maintain financial stability, the monetary base has to be driven by changes in the money supply just as the money multiplier in mainstream macroeconomics textbooks explains.
• False
• True

Sorry, quiz 557 is now closed.

You can find the answers and discussion here