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The Weekend Quiz – November 5-6, 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. The price at which the central bank provides reserves to the commercial banks is restricted by its target monetary policy rate.



2. A rising fiscal deficit is the signal that government policy is becoming more expansionary.




3. When a nation's currency appreciates strongly its international competitiveness falls. In these situations, the only way to restore that competitiveness is to reduce the rate of growth in domestic wages and prices relative to our trading partners.





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    This Post Has 7 Comments
    1. Only 2 out of 3. I made the mistake of reading some FT blog articles and comments this week, and the neo-liberal vibe must have weakened my defences.

    2. I figured 3 was false, but I answered true since I don’t know that the other options are. So, 2 out of three and looking forward to the analysis.

    3. I got all three but I don’t understand the zero interest rate option in terms of paying banks for their reserves. I’m missing something, of course.

    4. Dear David D (at 2016/11/04 at 11:49 pm)

      As I note in the quiz introduction, I do no tracking at all of any quiz entries. It is purely for your own fun.

      best wishes
      bill

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