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Saturday Quiz – July 25, 2009

Welcome to the billy blog Saturday quiz. The quiz tests whether you have been paying attention over the last seven days.

There is a slight change of format this week just for a change.

See how you go with the following five questions. Your results are only known to you and no records are retained.

1. If the flows from part-time employment to full-time employment are less than the flows from full-time employment to part-time employment then part-time employment must be rising.

2. The billions of US dollars that the Federal Reserve in America has pumped into reserves has made it easier for commercial banks to lend and kick start the economy.

3. Rising yields on government bonds will accompany a falling demand for the bonds relative to their supply into the bond markets.

4. A sovereign government holding foreign currency denominated debt is less exposed to exchange rate movements than a household which uses the currency because the government issues the currency and can credit bank accounts.

5. Luigi Pasinetti said that "investment brings forth its own saving". This insight tells you that government deficits will never result in financial crowding out.

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