The Weekend Quiz – May 16-17, 2020

May 15, 2020
bill
Economics

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 #582

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.

False
True

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.

False
True
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.