The Weekend Quiz – July 15-16, 2017

Welcome to The Weekend 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 non-government sector is immediately wealthier if the government issues bonds to match its net spending (relative to not issuing them at all).



2. When a country runs a small current account deficit and the private domestic sector is saving overall, the government cannot run a surplus.



3. Ignoring any reserve requirements, a central bank will eliminate any need to conduct open market operations to sustain its target policy rate merely by paying a positive return on excess overnight reserves.





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