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The Weekend Quiz – December 10-11, 2022

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. Governments concerned with their public debt ratio should encourage growth because the debt ratio falls once economic growth resumes.

2. A nation can run a current account deficit accompanied by a government sector surplus of equal proportion to GDP, while the private domestic sector is spending more than they it is earning.

3. Government deficit spending would have a greater immediate expansionary impact on aggregate spending if the central bank bought the public debt to match the deficit instead of a situation where the government matches it deficit by issuing debt to the private sector.

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