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The Weekend Quiz – December 30-31, 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. When the government matches its deficit with debt-issuance it changes the portfolio of wealth held in the non-government sector. The impact on purchasing power is equivalent to a leakage from the expenditure system (akin to taxation, saving or imports) which reduces the expansionary impact of the government deficit spending.

2. A public employment guarantee program, which required workers to attend a government centre each day to do jigsaw puzzles, would have no impact on national income.

3. If the government reduces its net spending by say $10 billion, the net financial assets destroyed by this fiscal withdrawal could be replaced by the central bank engaging in a $10 billion quantitative easing program.

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    This Post Has 6 Comments
    1. Full House also! Good to end the year on a high!

      Good wishes to Bill and thanks and appreciation for his extraordinary work.

      Good wishes to all who read and post on this remarkable blog.

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