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Saturday Quiz – March 16, 2013

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 questions. Your results are only known to you and no records are retained.

The accumulated stock of government spending associated with continuous budget deficits can increase the risk of inflation faced by an economy.

If a nation was running a current account deficit and a budget surplus equal to 2 per cent of GDP, we would always observe that the private domestic sector was spending more than it is earning.

When the government issues debt to match its budget deficit $-for-$ (or whatever currency unit is relevant) it also increases the net worth of the non-government sector.

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