The Weekend Quiz – September 15-16, 2018 | Bill Mitchell

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

* This week (Tuesday, September 11, 1973) marked the 45th Anniversary of the day when right-wing forces aided by the US overthrew the democratically elected government Chile. It was a terrorist act we should continue to remember like other terrorist acts!

1. The IMF use their estimates of the Non-Accelerating Inflation Rate of Unemployment (NAIRU) to calibrate their structural deficit estimates. Accordingly, the structural deficits will typically be:

biased downwards.
biased upwards.
difficult to assess because their forecasts are highly inaccurate

2. Under a fiat monetary system, the absence of currency convertibility means that:

there is no reason for people to hold currency as a hedge against gold price falls.
government can induce us to offer goods and services in return for public spending by fining us for walking down streets.
the currency is only convertible into government bonds rather than gold.

3. Only one of the following statements can be true when you observe rising government bond yields for new issues:

Government spending is becoming more expensive.
Bond prices are falling in response to demand.
Government spending is increasing the cost of borrowing for private investors.

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4 Responses to The Weekend Quiz – September 15-16, 2018

Mr Shigemitsu says:

Friday, September 14, 2018 at 19:03

3 out of 3!

That’s twice in about 3 years. – I’m getting there…slowly!
Robert Morgan says:

Friday, September 14, 2018 at 19:25

Well as they say in the song, 2 out of 3 ain’t bad…
Tom says:

Saturday, September 15, 2018 at 2:08

2 out of 3.

Got number one wrong.

Just a side note, I went to CNN for some coverage on Florence today before heading to work and the headline said something like, “Florence could leave 400,000 customers without electricity…”

Apparently, Americans/people have evolved into customers now, we aren’t just merely citizens!

Just daily dose of neoliberalism.
Sam says:

Saturday, September 15, 2018 at 3:37

Yeah, in the NYC subway, announcements are made to “customers”, no longer “passengers”.

We’re not a society, we’re a market.