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. Government spending which is accompanied by a bond sale to the non-government sector adds less to aggregate demand than would be the case if there was no bond sale.
- 2. If the external balance is always in surplus, then the government can safely run a fiscal surplus and not impede economic growth.
- 3. In a stock-flow consistent macroeconomics, we have to always trace the impact of flows during a period on the relevant stocks at the end of the period. Accordingly, government and private investment spending are two examples of flows that adds to the stock of aggregate spending which in turn impacts on GDP.
Sorry, quiz 686 is now closed.
You can find the answers and discussion here