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. A sovereign national government can run a balanced fiscal position over the economic cycle (peak to peak) as long as it accepts that after all the spending adjustments are exhausted that the private domestic balance will only be in surplus if the external balance is in surplus when averaged out over the same cycle.
- 2. An understanding of Modern Monetary Theory (MMT) allows us to understand that mass unemployment can arise if the growth in real wages are excessive.
- 3. Only one of the following statements is definitely true when you observe rising government bond yields for new issues:
- Government spending is becoming more expensive.
- Bond prices are falling in response to falling demand.
- Government spending is increasing the cost of borrowing for private investors.
Sorry, quiz 681 is now closed.
You can find the answers and discussion here