{"id":2965,"date":"2009-06-20T00:10:20","date_gmt":"2009-06-19T14:10:20","guid":{"rendered":"https:\/\/billmitchell.org\/blog\/?p=2965"},"modified":"2009-06-20T00:10:20","modified_gmt":"2009-06-19T14:10:20","slug":"saturday-quiz-june-20-2009","status":"publish","type":"post","link":"https:\/\/billmitchell.org\/blog\/?p=2965","title":{"rendered":"Saturday Quiz &#8211; June 20, 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>This is a Special Big Apple Edition direct from New York.<br \/>\n<!--more--><br \/>\n <a href=\"https:\/\/billmitchell.org\/blog\/wp-content\/uploads\/2009\/06\/big_apple.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/billmitchell.org\/blog\/wp-content\/uploads\/2009\/06\/big_apple.png\" alt=\"big_apple\" title=\"big_apple\" width=\"112\" height=\"104\" class=\"alignleft size-full wp-image-2988\" \/><\/a><\/p>\n<div style=\"clear:both\"><\/div>\n<p>See how you go with the following five questions. Your results are only known to you and no records are retained.<\/p>\n<h4>Quiz #14<\/h4><ul>\n<li>1. Countries that entered the current crisis with budget surpluses or smaller deficits will as a result<\/li><ul><li>have a better chance of minimising the real damage from the downturn because they have more fiscal room to provide stimulus.<\/li><li>have no better or worse chance of minimising the real damage from the downturn.<\/li><li>encounter less chance of stifling their recoveries through inflation.<\/li><\/ul>\n<li>2. Rising long-term bond yields are evidence that<\/li><ul><li>government borrowing is causing funds to dry up on that segment of the yield curve.<\/li><li>investors fear that the government will default on its debt or inflate it away.<\/li><li>investors are diversifying their financial asset portfolios as their confidence grows.<\/li><\/ul>\n<li>3. If the central bank does not pay interest to the bank&apos;s on overnight reserves, then deficit spending by the treasury<\/li><ul><li>will put too much money in the system which ultimately is inflationary if the spending gap closes.<\/li><li>will reduce short-term interest rates unless the central bank offers an interest-bearing government bond to the banks.<\/li><li>will push up short-term interest rates if investors sense that inflation will be higher.<\/li><\/ul>\n<li>5. The automatic stabilisers<\/li><ul><li>operate to attenuate the business cycle in both directions but usually require discretionary spending adjustments to ensure full employment.<\/li><li>will always get the budget back into balance because once growth resumes tax revenue rises and welfare spending falls.<\/li><li>will always ensure that the economy will approach full employment because if spending is below potential tax revenue will keep falling and welfare spending rising.<\/li><\/ul>\n<li>4. Which of the following is <strong>not<\/strong> an example of inflation? <\/li><ul><li>Firms adjust their prices upwards to normal capacity levels after discounting them during the recession to maintain market share.<\/li><li>The OPEC oil cartel announces that it will increase oil prices by 5 per cent per quarter over the next 5 years.<\/li><li>The price of imports rises because the exchange rate depreciates by 10 per cent.<\/li><\/ul>\n<\/ul>\n<h3>Sorry, quiz 14 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 #14 answers <\/h4><ul>\n<li>1. Countries that entered the current crisis with budget surpluses or smaller deficits will as a result<\/li><p>Answer: have no better or worse chance of minimising the real damage from the downturn.<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=2943\">Fiscal sustainability 101 - Part 3<\/a> for further material or post a comment if you want further explanation.<\/p>\n<li>2. Rising long-term bond yields are evidence that<\/li><p>Answer: investors are diversifying their financial asset portfolios as their confidence grows.<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=2943\">Fiscal sustainability 101 - Part 3<\/a> for further material or post a comment if you want further explanation.<\/p>\n<li>3. If the central bank does not pay interest to the bank&apos;s on overnight reserves, then deficit spending by the treasury<\/li><p>Answer: will reduce short-term interest rates unless the central bank offers an interest-bearing government bond to the banks.<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=2943\">Fiscal sustainability 101 - Part 3<\/a> for further material or post a comment if you want further explanation.<\/p>\n<li>5. The automatic stabilisers<\/li><p>Answer: operate to attenuate the business cycle in both directions but usually require discretionary spending adjustments to ensure full employment.<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=2943\">Fiscal sustainability 101 - Part 3<\/a> for further material or post a comment if you want further explanation.<\/p>\n<li>4. Which of the following is <strong>not<\/strong> an example of inflation? <\/li><p>Answer: The OPEC oil cartel announces that it will increase oil prices by 5 per cent per quarter over the next 5 years.<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=2943\">Fiscal sustainability 101 - Part 3<\/a> for further material or post a comment if you want further explanation.<\/p>\n<\/ul>\n\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. This is a Special Big Apple Edition direct from New York.<\/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-2965","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\/2965","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=2965"}],"version-history":[{"count":0,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/2965\/revisions"}],"wp:attachment":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}