{"id":14245,"date":"2011-04-23T04:00:01","date_gmt":"2011-04-22T18:00:01","guid":{"rendered":"https:\/\/billmitchell.org\/blog\/?p=14245"},"modified":"2011-04-23T04:00:01","modified_gmt":"2011-04-22T18:00:01","slug":"saturday-quiz-april-23-2011","status":"publish","type":"post","link":"https:\/\/billmitchell.org\/blog\/?p=14245","title":{"rendered":"Saturday Quiz &#8211; April 23, 2011"},"content":{"rendered":"<p>\t\t\t\tWelcome to the <strong>billy blog Saturday quiz<\/strong>. The quiz tests whether you have been paying attention over the last seven days.  See how you go with the following six questions. Your results are only known to you and no records are retained.<br \/>\n<!--more--><br \/>\n<h4>Quiz #109<\/h4><ul>\n<li>1. Even Modern Monetary Theory accepts that continually expanding the money supply will inevitably be inflationary.<\/li><ul><li>False<\/li><li>True<\/li><\/ul>\n<li>2. If there is an external deficit of 2 per cent of GDP and the government balances its budget then the private sector will have:<\/li><ul><li>Cannot really tell definitively without further information.<\/li><li>a deficit in spending relative to its income equal to 2 per cent of GDP.<\/li><li>an excess of spending relative to its income equal to 2 per cent of GDP.<\/li><\/ul>\n<li>3. By draining funds out of the system, government borrowing from the private sector reduces the risk that public spending will overheat the economy.<\/li><ul><li>False<\/li><li>True<\/li><\/ul>\n<li>4. A national government would be unable to rely on the central bank purchasing treasury debt to match its budget deficit (that is, \"monetise the deficit\") if the central bank is targeting a positive short-term policy rate.<\/li><ul><li>False<\/li><li>True<\/li><li>Maybe<\/li><\/ul>\n<li>5. Premium Question - In Year 1, the economy plunges into recession with nominal GDP growth falling to minus -1 per cent. The inflation rate is subdued at 1 per cent per annum. The outstanding public debt is equal to the value of the nominal GDP and the nominal interest rate is equal to 1 per cent (and this is the rate the government pays on all outstanding debt). The government&apos;s budget balance net of interest payments goes into deficit equivalent to 1 per cent of GDP and the debt ratio rises by 3 per cent. In Year 2, the government stimulates the economy and pushes the primary budget deficit out to 2 per cent of GDP and in doing so stimulates aggregate demand and the economy records a 4 per cent nominal GDP growth rate. All other parameters are unchanged in Year 2. Under these circumstances, the public debt ratio:    <\/li><ul><li>rises by 1 per cent.<\/li><li>falls by 1 per cent.<\/li><li>falls but you cannot tell by how much from this information<\/li><li>none of the above.<\/li><\/ul>\n<\/ul>\n\n\t<h3>Sorry, quiz 109 is now closed.<\/h3>\n\t<p> You can find the answers and discussion <a href=\"\/blog\/?p=14247\">here<\/a><\/p>\n\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to the billy blog Saturday quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following six questions. Your results are only known to you and no records are retained.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[58],"tags":[],"class_list":["post-14245","post","type-post","status-publish","format-standard","hentry","category-saturday-quiz","entry","no-media"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/14245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14245"}],"version-history":[{"count":0,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/14245\/revisions"}],"wp:attachment":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}