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The Weekend Quiz – April 13-14, 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. The statement that lending is capital-constrained rather than reserve constrained would not apply if the banks had to maintain a reserve ratio of 100 per cent.

2. It is impossible for a government to run a public surplus without impairing growth because it is likely that the private domestic sector will desire to save overall.

3. A rising government deficit indicates an expansionary shift in policy and the challenge is to calibrate that expansion to ensure nominal demand growth does not exceed the real capacity of the economy to respond by increasing real output.

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    This Post Has 4 Comments
    1. I can’t even try to answer. The Econospeak is baffling, so many positives and negatives all mixed in are very confusing for the uninitiated. I’m sure that’s what Bill intends since the questions are intended to need careful scrutiny.

    2. 100% – it must be cause I’ve been reading the new textbook! Which I thoroughly recommend by the way. It definitely puts all the pieces together into a coherent jigsaw.

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