Saturday Quiz – July 19, 2014

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.

Quiz #278

• 1. Modern Monetary Theory teaches us that one of the dangers of public spending is that it can crowd out private spending.
• False
• True
• 2 National accounting shows us that a government surplus equals a non-government deficit. But that doesn't mean that if fiscal austerity ends up generating a fiscal surpluses that households and firms taken together will be running deficits.
• False
• True
• 3. The payment of a positive interest return by the central bank on overnight bank reserves does not eliminate the need for it to conduct open market operations to ensure its policy rate is sustained (ignore any reserve requirements).
• False
• True

Sorry, quiz 278 is now closed.

You can find the answers and discussion here