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Saturday Quiz – April 2, 2011

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.

1. Eurozone nations can only alter their international competitiveness by reducing domestic wages and prices because they no longer have a floating currency.

2. Modern Monetary Theory (MMT) refutes the claim that government spending can crowd out private spending.

3. In general, the OECD and IMF estimates of the impact of the automatic stabilisers are biased downwards.

4. If there is an external deficit, efforts by the private domestic sector to increase its overall saving as a percentage of GDP, will ensure the government budget is in deficit, irrespective of what the government desires.

5. Premium Question: When a government runs a continuous budget deficit public spending builds up over time and eventually exposes the economy to inflation risk.

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    This Post Has 2 Comments
    1. I concur on the “a bit more straightforward than usual” since I too got 100% and I’m just starting to grasp MMT.

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