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The Weekend Quiz – March 6-7, 2021

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. Assume that the national accounts of a nation is reveal that its external surplus is equivalent to 2 per cent of GDP and the private domestic sector is saving overall 3 per cent of GDP. We would also observe: A fiscal deficit equal to 1 per cent of GDP. A budget surplus equal to 1 per cent of GDP. A budget deficit equal to 5 per cent of GDP. A budget surplus equal to 5 per cent of GDP.





2. When a government's fiscal deficit rises we can conclude that it is pursuing an expansionary fiscal policy.



3. Given a fiat currency issuing nation is not revenue constrained, it is incorrect to say that recipients of income support provided by such a national government are living off the hard work of those who pay income taxes.





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