The Weekend Quiz – July 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. As a matter of accounting, the net financial assets held by the non-government sector rise $-for-$ when a sovereign government issues debt.

2. In a fiat monetary system (for example, US or Australia) with an on-going external deficit that exceeds the public deficit (expressed as percentages of GDP), the private domestic sector cannot reduce its overall debt levels (by overall saving) without incurring employment losses.

3. The imposition of fiscal rules which aim to limit the discretionary capacity of governments to net spend bias fiscal policy towards counter-cyclical responses when private spending is weak.

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

    1. Lance says:

      2 out of 3! Number 3 wrong! Still an average, though elderly student.

    2. Chris Herbert says:

      It took me four reads to figure out the sentence that is question three. Then I still got it wrong!

    3. Matt R says:

      2 out of 3 again, but I quickly realised where I went wrong on Q2. Just needed a pen and paper to scribble on. It doesn’t come naturally… yet :)

    4. Sam says:

      3 out of 3.

      Wasn’t sure if “net spend bias” meant what I thought.

    5. Julian Potter says:

      woohoo, MMT Friend!

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