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The Weekend Quiz – July 7-8, 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. Modern Monetary Theory (MMT) recognises that the unemployed live of the hard work of those that are employed.

2. The accumulated spending build-up of annual fiscal deficits does not pose an inflation threat.

3. Which scenario represents a more expansionary outcome: (a) A fiscal deficit equivalent to 5 per cent of GDP (including the impact of automatic stabilisers equivalent to 3 per cent of GDP). (b) A fiscal deficit equivalent to 3 per cent of GDP. (c) You cannot tell because you do not know the decomposition between the cyclical and structural components in Option (b)

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    This Post Has 6 Comments
    1. First question made me physically unwell, so i felt compelled, even obliged, to deliberately choose the wrong answer.

    2. If MMT recognises that Taxes do not “fund” government spending, then I find it difficult to generally accept that question one is true. Except if in this case, “hard work of the employed” is interpreted as,” contribution to productive output.”

    3. What does Greenspan say when schooling Ryan
      ‘the cash itself nice to have but its got to be in context of the real resources created at the time those benefits are paid so that you can buy the real resources with those benefits’

    4. 2 out of 3. I got question 1 right but I would like to throw out there that Adam Smith had his dinner cooked by his mum and my husband can work the hours he does cause I wash his undies.

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