The Weekend Quiz – June 6-7, 2020

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 #585

  • 1. The private domestic sector can save overall even if the government fiscal balance is in surplus as long as net exports are positive.
    • False
    • True
  • 2. When the central bank purchases government bonds in the secondary bond market, it has the equivalent impact on financial assets in the non-government sector as if a fiscal deficit, which increased reserves by the same amount would have.
    • False
    • True
  • 3. While continuous national governments deficits are possible if the non-government sector desires to save overall, they do imply continuously rising public debt levels under current institutional arrangements.
    • False
    • True

Sorry, quiz 585 is now closed.

You can find the answers and discussion here

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