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Saturday Quiz – June 27, 2015

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. If the government achieves in reducing its net spending by say $10 billion, the net financial assets destroyed by this fiscal withdrawal could be replaced by the central bank engaging in a $10 billion quantitative easing program.

2. When a country runs an external surplus, the national government can safely run a fiscal surplus without impeding economic growth.

3. Which fiscal deficit outcome is the most expansionary?

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    This Post Has 3 Comments
    1. 3/3

      Studied hard for it.

      Even got the 2 sectoral balances ones correct this time even if question 3 was a reasoned lucky guess.

    2. 3 outta 3 :)
      As to Q2, even spending after full capacity may increase NOMINAL GDP, just that inflation.
      So the answer is no. ;)

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