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The Weekend Quiz – October 19-20, 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 government has to issue debt if the policy interest rate is positive unless the central bank pays a positive interest rate on overnight reserves.

2. Other things equal, larger fiscal deficits as a percentage of GDP squeeze the availability of real resources that the private sector can use for other productive uses.

3. For a nation running a small external deficit, the government fiscal position will always be in deficit if the domestic private sector successfully spends less than its income.

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