Saturday Quiz – December 31, 2011

Welcome to the Last day of the year 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 questions. Your results are only known to you and no records are retained.

1. The government has two macroeconomic policy arms available - fiscal and monetary policy. However, it only has control over monetary policy.



2. Americans enjoy a higher material standard of living as a result of the Chinese holdings of US government debt.



3. The creation of a sovereign wealth fund from the proceeds of a budget surplus represents increased national savings.



4. Engaging unemployed workers in a government public works program to dig a large hole and fill it in again on a daily basis will provide no enduring benefit to national income.



5. Premium Question: A strategy to force the government to balance its budget means that the private domestic sector has to be continously accumulating debt overall unless the current account moves into surplus.





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    6 Responses to Saturday Quiz – December 31, 2011

    1. Talvez... says:

      4/5…

      I missed the first one.

    2. Andy says:

      I missed the first one too. Can’t wait for the answer.

    3. Sean Fernyhough says:

      4/5 first one again.

    4. geerussell says:

      Four out of five here too and also missed the first one. I’m guessing it has to do with the intent of the question being to highlight that deficit/surplus outcomes are non-discretionary and me reading “fiscal” and thinking in terms of control over where spending is directed and taxes levied.

    5. Bazz from Adelaide says:

      Same for me 4/5 and the first one wrong
      Thanks geerussell :at Saturday, December 31, 2011 at 8:46
      for your understanding.

      Would most like to say a very very very big Thank- you to Bill for the Saturday quiz and
      all your hard work in helping many lay people (myself) get an understanding
      of MMT .

      Happy New Year Bill and all contributors.May 2012 have many wonderful times for you and family.

    6. Dan Kervick says:

      Missed the first one too.

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