The Weekend Quiz – May 12-13, 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.

Quiz #477

  • 1. If a nation has an external deficit and household saving increases as a proportion of disposable income then the government cannot run a fiscal surplus without output falling.
    • False
    • True
  • 2. Politics aside, the US central bank could still increase interest rates even if the US government instructed it to directly purchase treasury debt to facilitate the national governments fiscal deficit.
    • False
    • True
  • 3. A continuous fiscal deficit leads to public spending building up which while not a problem in the short-run, increases the long-run inflation risk faced by the economy.
    • False
    • True

Sorry, quiz 477 is now closed.

You can find the answers and discussion here

This Post Has 2 Comments

  1. 3/3 baby! On fire this week. Learnt a lot about the external aspect. Re-reading a lot of old blogs is helping I find. What a great resource the archive is.

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