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The Weekend Quiz – September 17-18, 2016

Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention or not to the blogs I post. See how you go with the following questions. Your results are only known to you and no records are retained.

1. We are told that a country is running a small current account deficit and that the private domestic sector is saving overall. However, until we know the relative magnitudes of these balances, we are unable to conclude the state of the fiscal balance.

2. A fiscal deficit means that the stock of government spending is larger than the tax revenue it receives.

3. The only obvious thing we can conclude when a government records a fiscal surplus is that the government is seeking to attenuate the growth in aggregate spending by withdrawing net spending from the economy.

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    This Post Has One Comment
    1. Switzer (602 on Foxtel) earlier this week had Charlie Aitken (Southern Cross Equities) – who’s no slouch himself – stating he thinks deficits could be next step. Could MMT message be getting to the top end of town?! But very positive.

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