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. When a currency-issuing government voluntarily constrains itself ensure any fiscal deficits are matched by borrowing from the private sector, it reduces the funds available for private investment expenditure.
- 2. An increasing fiscal deficit tells us nothing about the government's policy intentions.
- 3. The crucial difference between a monetary system based on the convertible currency backed by gold and a fiat currency monetary is that under the former system:
- The national government could not use net spending to achieve full employment.
- The national government had to issue debt to cover spending above taxation.
- Excessive national government spending led to inflation.
- None of the above.
Sorry, quiz 688 is now closed.
You can find the answers and discussion here