Quiz #507

• 1. An application of Modern Monetary Theory (MMT) tells us that the current proposals for a Green New Deal in the US and elsewhere will lead to crowding out of other investment.
• False
• True
• 2. A rising government deficit will always allow the private domestic sector to increase its saving in nominal terms.
• False
• True
• 3. A lack of a close correspondence between the growth of bank reserves and the growth in the stock of money is evidence that credit creation is being tightly constrained.
• False
• True

Quiz #507 answers

• 1. An application of Modern Monetary Theory (MMT) tells us that the current proposals for a Green New Deal in the US and elsewhere will lead to crowding out of other investment.

Answer: True

• 2. A rising government deficit will always allow the private domestic sector to increase its saving in nominal terms.

Answer: False

• 3. A lack of a close correspondence between the growth of bank reserves and the growth in the stock of money is evidence that credit creation is being tightly constrained.

Answer: True