{"id":6492,"date":"2009-12-05T05:47:39","date_gmt":"2009-12-04T19:47:39","guid":{"rendered":"https:\/\/billmitchell.org\/blog\/?p=6492"},"modified":"2009-12-05T05:47:39","modified_gmt":"2009-12-04T19:47:39","slug":"saturday-quiz-december-5-2009","status":"publish","type":"post","link":"https:\/\/billmitchell.org\/blog\/?p=6492","title":{"rendered":"Saturday Quiz &#8211; December 5, 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>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 #37<\/h4><ul>\n<li>1.  Central banks (for example, US Federal Reserve, Reserve Bank of Australia, and the Central Bank of Ireland) conduct monetary policy by setting the short-run interest rate rather than trying to control the money supply which is endogenous.<\/li><ul><li>False<\/li><li>True<\/li><\/ul>\n<li>2. An economist who believed in Ricardian Equivalence would argue that the boost of retail sales in Australia following the December stimulus package had nothing to do with the $900 cash handout. Households would have merely saved the handout to pay for future tax rises.<\/li><ul><li>False<\/li><li>True<\/li><\/ul>\n<li>3. When the German constitutional requirement that the federal budget be balanced at all times comes into force, fiscal policy will become pro-cyclical and destabilising.<\/li><ul><li>False<\/li><li>True<\/li><\/ul>\n<li>4. The reason estimates of structural budget deficits are to be treated with suspicion relates to the fact that typically the implicit estimates of potential GDP are too optimistic.<\/li><ul><li>False<\/li><li>True<\/li><\/ul>\n<li>5. The introduction of an employment guarantee where the federal government offers a minimum wage job to anyone who wanted one would require a modest increase in the budget deficit but there would never be a question that a sovereign government could not afford this program.<\/li><ul><li>False<\/li><li>True<\/li><\/ul>\n<\/ul>\n<h3>Sorry, quiz 37 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 #37 answers <\/h4><ul>\n<li>1.  Central banks (for example, US Federal Reserve, Reserve Bank of Australia, and the Central Bank of Ireland) conduct monetary policy by setting the short-run interest rate rather than trying to control the money supply which is endogenous.<\/li><p>Answer: False<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=6449\">Most bananas are atheists <\/a> if you want further information and\/or post a comment.<\/p>\n<li>2. An economist who believed in Ricardian Equivalence would argue that the boost of retail sales in Australia following the December stimulus package had nothing to do with the $900 cash handout. Households would have merely saved the handout to pay for future tax rises.<\/li><p>Answer: True<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=6399\">Deficits should be cut in a recession. Not!<\/a> if you want further information and\/or post a comment.<\/p>\n<li>3. When the German constitutional requirement that the federal budget be balanced at all times comes into force, fiscal policy will become pro-cyclical and destabilising.<\/li><p>Answer: True<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=6373\">Structural deficits and automatic stabilisers<\/a> if you want further information and\/or post a comment.<\/p>\n<li>4. The reason estimates of structural budget deficits are to be treated with suspicion relates to the fact that typically the implicit estimates of potential GDP are too optimistic.<\/li><p>Answer: False<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=6373\">Structural deficits and automatic stabilisers<\/a> if you want further information and\/or post a comment.<\/p>\n<li>5. The introduction of an employment guarantee where the federal government offers a minimum wage job to anyone who wanted one would require a modest increase in the budget deficit but there would never be a question that a sovereign government could not afford this program.<\/li><p>Answer: False<\/p><p>Explanation: Please read <a href=\"https:\/\/billmitchell.org\/blog\/?p=6373\">Structural deficits and automatic stabilisers<\/a> if you want further information and\/or post a comment.<\/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. See how you go with the following five 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-6492","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\/6492","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=6492"}],"version-history":[{"count":0,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6492\/revisions"}],"wp:attachment":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}