The Weekend Quiz – July 14-15, 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. The value of money inevitably declines if the money supply rises.



2. Economists note that the automatic stabilisers in-built into government fiscal policy increase deficits (or reduce surpluses) in times of slack aggregate demand. This sensitivity of the fiscal outcome to the economic cycle would not be eliminated if the government followed a fiscal rule such that it had to balance its fiscal outcome at all times.



3. One advantage of low inflation is that the central bank can better use balance sheet management techniques to control yields on public debt at certain targetted maturities.





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    3 Responses to The Weekend Quiz – July 14-15, 2018

    1. robert morgan says:

      3 out of 3 again…
      Brilliant teaching from Bill Mitchell.
      At last it seems to be sinking in… :)
      Thanks matey

    2. Matt R says:

      2 out of 3. I can’t immediately see why low inflation helps the state control gilt yields, but I’m sure I will!

    3. Lance says:

      Three out of three this week!
      Nothing like having a guess at question 3!

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