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The Weekend Quiz – August 4-5, 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. National accounting rules dictate that a national government surplus equals a non-government deficit (and vice-versa). If a national government successfully achieves a fiscal surplus through an austerity program then the private domestic sector must be spending more than it is earning.

2. A government's fiscal deficit rises despite the government's stated fiscal austerity stance. We can conclude from the evidence at hand that the austerity mantra of the government doesn't correctly describe its fiscal policy stance.

3. The immediate impact on aggregate spending in the economy would be invariant between the government matching its deficit spending with private bond issues and the situation where the government instructed the central bank to buy its bonds to match the deficit.

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    This Post Has 7 Comments
    1. Many Thanks Bill for your teachings. After almost 2 years of reading your blog, I achieved a perfect score at the week-end quizz for the first time!
      I will continue to spread the good word of MMT whenever I can!

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