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.
These were the Quiz questions for the fourth and final week of my edx MOOC – Modern Monetary Theory: Economics for the 21st Century – that finished recently.
I promised students that I would provide answers and analysis for them after the course finished.
- 1. The MMT classification of exports as a cost means:
- (a) Currency-issuing governments are not financially constrained.
- (b) Foreign spending into the local economy can be inflationary.
- (c) The resources that are embodied in exports are lost to the nation and are, instead, used by foreigners to enhance their material prosperity.
- (d) Government debt interest payments have to be serviced.
- 2. A rising child dependency ratio:
- (a) Will ultimately lead to a falling standard dependency ratio once birth rates decline.
- (b) Means that people of retirement age are increasing at a faster rate than children.
- (c) Means that child care centres are becoming more dependent on government support.
- (d) Means the aged dependency ratio is falling.
- 3. When a nations exchange rate depreciates:
- (a) The nations inflation rate accelerates.
- (b) Imported motor vehicles become cheaper for residents to buy.
- (c) Foreigners stop coming to the nation for holidays.
- (d) Imported goods become more expensive in the local currency.
- 4. When a nations exchange rate appreciates, the debt servicing payments for debt denominated in a foreign currency:
- (a) Fall in local currency terms.
- (b) Rise in local currency terms.
- (c) Are unchanged in local currency terms because the payments are fixed by contract.
- (d) Rise because foreign governments require higher payments.
- 5. A nation will become more competitive in international trade if:
- (a) Its nominal exchange rate is unchanged, but its inflation rate falls relative to other nations.
- (b) Its nominal exchange rate is unchanged, but its inflation rate rises relative to other nations.
- (c) Its nominal exchange rate appreciates, but its inflation rate is unchanged relative to other nations.
- (d) Its nominal exchange rate depreciates, but its inflation rate is unchanged relative to other nations.
- (a) and (b)
- (b) and (c)
- (a) and (c)
- (a) and (d)
Sorry, quiz 632 is now closed.
You can find the answers and discussion here