{"id":1721,"date":"2009-04-25T12:51:50","date_gmt":"2009-04-25T02:51:50","guid":{"rendered":"https:\/\/billmitchell.org\/blog\/?p=1721"},"modified":"2009-04-25T12:51:50","modified_gmt":"2009-04-25T02:51:50","slug":"saturday-quiz-april-25-2009","status":"publish","type":"post","link":"https:\/\/billmitchell.org\/blog\/?p=1721","title":{"rendered":"Saturday Quiz &#8211; April 25, 2009"},"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.<\/p>\n<p>Given this is April 25 &#8211; I pause to recognise the commitment and personal sacrifices made by our past (brave) generations in various wars however misplaced their logic was under the colonial smokescreen.<\/p>\n<p>Back to the quiz! See how you go with the following five questions. Your results are only known to you and no records are retained.<br \/>\n<!--more--><br \/>\n<h4>Quiz #6<\/h4><ul>\n<li>The Australian (or US, for that matter) government&apos;s net spending is<\/li><ul><li>similar in impact to money created by commercial bank credit creation.<\/li><li>unique because spending derived from private credit creation cannot add to the private sector&apos;s net worth.<\/li><li>unique because the Government can always pay for goods and services by crediting bank accounts.<\/li><\/ul>\n<li>While it is likely that the GDP (output) gap will be around 5 per cent this year, the national government&apos;s capacity to fill this gap<\/li><ul><li>will be constrained by nothing but its political will.<\/li><li>will be constrained by how much private bank lending is available to facilitate spending by consumers and firms.<\/li><li>will be constrained by its ability to access capital in the global markets given the lack of credit available domestically at present.<\/li><\/ul>\n<li>From the perspective of aggregate demand, creating a minimum wage private sector job<\/li><ul><li>will probably be better than creating a minimum wage public sector job because the private sector job is likely to be more productive.<\/li><li>will probably be better than creating a minimum wage public sector job because the private sector job reflects market choices of what people want to buy.<\/li><li>will probably have the same impact as creating a minimum wage public sector job.<\/li><\/ul>\n<li>If the Government introduced a permanent Job Guarantee (offer of minimum wage job to anyone who wanted it) then<\/li><ul><li>it would have no inevitable implications for future deficits or aggregate demand levels.<\/li><li>it would mean that aggregate demand would always be higher than otherwise.<\/li><li>it would lock itself into budget deficits forever.<\/li><\/ul>\n<li>The losses that the Futures Fund (or any sovereign fund) has made on its share holding<\/li><ul><li>suggest that public and hence national saving has declined which will diminish the capacity of the national government to net spend in the future.<\/li><li>are similar in concept to any depreciating publicly-held asset and have no implications for the national government&apos;s future capacity to net spend.<\/li><li>may need future taxation revenue offsets to restore  the capacity of the national government to net spend in the future.<\/li><\/ul>\n<\/ul>\n<h3>Sorry, quiz 6 is now closed.<\/h3>\n\t<p> scroll down to  find the answers and explanation below.\n\t<br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/><br\/>\n\t<h4>Quiz #6 answers <\/h4><ul>\n<li>The Australian (or US, for that matter) government&apos;s net spending is<\/li><p>Answer: unique because spending derived from private credit creation cannot add to the private sector&apos;s net worth.<\/p><p>Explanation: Please see <a href=\"https:\/\/billmitchell.org\/blog\/?p=1623\">Money multiplier and other myths<\/a> or post a question via the comments page.<\/p>\n<li>While it is likely that the GDP (output) gap will be around 5 per cent this year, the national government&apos;s capacity to fill this gap<\/li><p>Answer: will be constrained by nothing but its political will.<\/p><p>Explanation: Please see <a href=\"https:\/\/billmitchell.org\/blog\/?p=1708\">How large should the deficit be?<\/a> or post a question via the comments page.<\/p>\n<li>From the perspective of aggregate demand, creating a minimum wage private sector job<\/li><p>Answer: will probably have the same impact as creating a minimum wage public sector job.<\/p><p>Explanation: Please see <a href=\"https:\/\/billmitchell.org\/blog\/?p=1644\">Boondoggling and leaf-raking<\/a> or post a question via the comments page.<\/p>\n<li>If the Government introduced a permanent Job Guarantee (offer of minimum wage job to anyone who wanted it) then<\/li><p>Answer: it would have no inevitable implications for future deficits or aggregate demand levels.<\/p><p>Explanation: Please see <a href=\"https:\/\/billmitchell.org\/blog\/?p=1644\">Boondoggling and leaf-raking<\/a> or post a question via the comments page.<\/p>\n<li>The losses that the Futures Fund (or any sovereign fund) has made on its share holding<\/li><p>Answer: are similar in concept to any depreciating publicly-held asset and have no implications for the national government&apos;s future capacity to net spend.<\/p><p>Explanation: Please see <a href=\"https:\/\/billmitchell.org\/blog\/?p=1570\">The Futures Fund scandal<\/a> or post a question via the comments page.<\/p>\n<\/ul>\n\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. Given this is April 25 &#8211; I pause to recognise the commitment and personal sacrifices made by our past (brave) generations in various wars however misplaced their logic was under the colonial smokescreen. Back&hellip;<\/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-1721","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\/1721","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=1721"}],"version-history":[{"count":0,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1721\/revisions"}],"wp:attachment":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}