Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern…
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. Assume that a nation 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 find
- Cannot determine - we would need to know the scale of private domestic sector saving as a % of GDP
- A fiscal deficit
- A fiscal surplus
- 2. Government bonds constitute non-government financial wealth. Thus, a fiscal deficit will add to non-government sector net worth only if it is accompanied by the issuance of new bonds.
- 3. A government wanting to achieve full employment after a deep recession will succeed if it uses discretionary fiscal policy to ensure real GDP growth gets back on trend.
Sorry, quiz 679 is now closed.
You can find the answers and discussion here