The Weekend Quiz – April 16-17, 2022

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 #679

  • 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.
    • True
    • False
  • 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.
    • True
    • False

Sorry, quiz 679 is now closed.

You can find the answers and discussion here

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