The Weekend Quiz – June 20-21, 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 #587

  • 1. If the current account (on balance of payments) is in deficit and household saving increases as a proportion of disposable income then the government could still run a fiscal surplus without a decline in output and income occurring.
    • False
    • True
  • 2. Politics aside, the central bank can still increase interest rates even if it was legislatively required to directly purchase treasury debt to match the national governments fiscal deficit.
    • False
    • True
  • 3. Domestic deflation (reducing domestic wages and prices relative to other nations), which Eurozone nations are prone to pursue because they have no exchange rate flexibility, may not increase export competitiveness.
    • False
    • True

Sorry, quiz 587 is now closed.

You can find the answers and discussion here

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