The Weekend Quiz – April 21-22, 2018

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. If the real interest rate (difference between nominal interest rate and inflation) is constant, then a currency-issuing government, which matches its net spending $-for-$ with debt issuance, could double its fiscal deficit without pushing up the public debt ratio.



2. A government in any nation that achieves positive net exports can push for a primary fiscal surplus knowing it will not compromise growth.



3. Assume that inflation is stable, there is excess productive capacity, and the central bank maintains its current interest rate target. If on average the government collects an income tax of 20 cents in the dollar, then total tax revenue will rise by 0.20 times $x if government spending increases (once and for all) by $X dollars and private investment and exports remain unchanged.





Spread the word ...
    This entry was posted in Saturday quiz. Bookmark the permalink.

    5 Responses to The Weekend Quiz – April 21-22, 2018

    1. Lance says:

      One out of three! I’m hopeless!

    2. Nigel Hargreaves says:

      Three out of three! LOL.

    3. Robert Morgan says:

      Two out of three ain’t bad…
      Sounds like a song, so there is hope that this stuff is sinking in…
      Thanks for all your work Bill, it is appreciated .. :)

    4. Sam says:

      Three out of three.

      I just hope my reasoning was correct…

    5. cs says:

      3 out of 3!!!!! I can’t believe it though.

      I am hoping my reasoning was right too…..

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    *
    To prove you're a person (not a spam script), type the answer to the math equation shown in the picture.
    Anti-spam equation

    This site uses Akismet to reduce spam. Learn how your comment data is processed.