I read an article in the Financial Times earlier this week (September 23, 2023) -…
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. If the national government stopped issuing public debt then its deficit spending would be no more expansionary than the current practice of non-government bank reserves through debt issuance.
- 2. Non-government sector net worth does not immediately change when the government issues debt which exactly matches ($-for-$) the increase in net public spending.
- Depends on whether interest is paid on Excess reserves
- 3. If net exports are contributing to economic growth, then the national government may have the room to run a fiscal surplus without impeding that growth.
Sorry, quiz 582 is now closed.
You can find the answers and discussion here