The Weekend Quiz – February 15-16, 2020

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 #569

  • 1. Adherence to a 'balanced budget rule', measured over a full economic cycle (peak to peak) will force the private domestic sector balance to run a deficit on average if the external balance is in deficit on average over the same cycle.
    • False
    • True
  • 2. Modern Monetary Theory (MMT) teaches us that a sovereign government does not have to issue debt to finance its spending. But the more public debt it voluntarily issues:
    • The less is the volume of investment funds in the non-government sector that can be used for other investments.
    • The greater is non-government wealth held in the form of public debt.
    • The more difficult it is for banks to attract deposits to initiate loans from.
    • All of the above.
  • 3. A fiscal surplus indicates that the national government is:
    • Trying to slow the economy down and contain inflation.
    • Trying to reduce public debt.
    • You cannot conclude anything about the government's policy intentions.

Sorry, quiz 569 is now closed.

You can find the answers and discussion here

Back To Top