The Weekend Quiz – March 30-31, 2019

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.

1. Larger fiscal deficits as a percentage of GDP typically mean that there are less real resources available for other productive uses.



2. For a nation running a current account deficit, income adjustments will ensure government fiscal position is in deficit if the domestic private sector seeks to increase its saving overall as a percentage of GDP.



3. Higher levels of taxation permit the government to increase its real spending.





Spread the word ...
    This Post Has 7 Comments

    2. Crap, reading too many of the “criticisms” of MMT made me daft and miss two questions. I may link to this questionnaire as an example of how there’s a lot more to it than “deficits don’t matter”.

    3. “2 outa 3 again! Q1 wrong. Sigh.”

      But why.

      [Bill edited out spoiler hints – please leave your conjectures until after everyone has had a chance]

    4. It’s Q3 three that did me in.

      I forgot that although taxes don’t fund spending, they do free up resources for the government to buy.

    6. Philip R – generally, what can make these questions tricky is that macroeconomics requires thinking about different ramifications. The tendency to think in binary terms often results in misunderstanding. This often catches me out.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Back To Top