The Weekend Quiz – January 30-31, 2021

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 #620

  • 1. If the annual inflation rate is greater than the growth in money wages, we can conclude that there has been a redistribution of national income towards profits because the real wage has fallen.
    • False
    • True
  • 2. The non-government sector net wealth rises when there are government fiscal deficits, because, under current institutional practices, governments issue bonds to exactly match ($-for-$) their deficits.
    • False
    • True
  • 3. Assume that a national is continuously running an external deficit of 2 per cent of GDP. In this economy, if the private domestic sector successfully saves overall, we would always find:
    • A public fiscal deficit.
    • A public fiscal surplus.
    • Cannot tell because we don't know the scale of the private domestic sector saving as a % of GDP.

Sorry, quiz 620 is now closed.

You can find the answers and discussion here

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