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The Weekend Quiz – July 22-23, 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. Irrespective of what the government does, the private domestic sector can still save overall, as long as the external sector delivers a surplus.



2. Central bank interest payments to the private banks on reserves reduces the private banks' incentive to advance credit to the private sector.



3. Rising government deficits indicate that its fiscal stance is becoming more expansionary.





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    This Post Has 4 Comments
    1. Simon, it took me months to learn to look into the questions for the deeper shades of meaning to get more questions right each week than wrong.

      Do not give up mate.

      AL

    2. I was just thinking that. I was tempted to think of Romantic, individualized definitions of “incentive”, and to quibble over them. But there’s probably a definition in economics of “incentive”, and a reason, in economics, to use that definition, and that’s what I’m here to learn.
      Also, I shouldn’t keep score. Quiz questions are just bait to get me involved in the discussion.

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