The Weekend Quiz – August 12-13, 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.

Quiz #438

  • 1. A central bank sets the short-run interest rate and can choose to pay any rate on excess reserves to the commercial banks that it chooses.
    • False
    • True
  • 2. The Australian dollar has appreciated recently against many key currencies. This has squeezed some of export industries (such as manufacturing) which are not enjoying a commensurate growth in world demand for their products. A cut in real wages is needed to restore international competitiveness in the industries that are under pressure.
    • False
    • True
  • 3. If the nation is running a current account deficit of 2 per cent of GDP and the government runs a surplus equal to 2 per cent of GDP, then we know that at the current level of GDP, the private domestic sector is spending less than it is earning.
    • False
    • True

Sorry, quiz 438 is now closed.

You can find the answers and discussion here

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