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Saturday Quiz – July 13, 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.

1. A national government which runs a balanced budget over the economic cycle (peak to peak) will ensure that households and firms overall spend more than they earn - that is, run down previous savings or accumulate more net debt, once all the national spending and income adjustments are exhausted.

2. Modern Monetary Theory (MMT) teaches us that a sovereign government does not have to issue debt to finance its spending. But the more public debt it voluntarily issues the greater is non-government wealth held in the form of public debt.

3. A basic idea in Modern Monetary Theory (MMT) is that excessive real wage demands by workers can cause mass unemployment.

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    This Post Has 3 Comments
    1. Off-topic:

      Bill, often you show a graph of how wages have not kept up with productivity since the 70s, if you pick another point on the timeline later than the 70s has there been a period of time where wages has kept up with productivity increases?

    2. Hey Bill,

      in your “Saturday Quiz – July 13, 2013 – answers and discussion” you provided the answer to question 2 to be “false”. Nevertheless, if one chooses “false” here to answer question 2 it shows up as being wrong.

      Probably a small technical error.

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