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.

Quiz #552

  • 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.
    • False
    • True
  • 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.
    • False
    • True
  • 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.
    • False
    • True

Sorry, quiz 552 is now closed.

You can find the answers and discussion here

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