The Weekend Quiz – May 4-5, 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 #528

  • 1. Workers enjoy real wage increases when the rate of growth in earnings outstrips labour productivity growth.
    • False
    • True
  • 2. Quantitative easing aims to stimulate aggregate spending by reducing long-term investment rates whereas fiscal deficit stimulate aggregate spending via tax cuts or direct public spending. Both policies ultimately work by increasing the net financial assets held by the non-government sector.
    • False
    • True
  • 3. An understanding of Modern Monetary Theory (MMT) leads to the conclusion that a central bank could still increase interest rates even if the government instructed it to directly purchase treasury debt as an accompanying operation to the governments fiscal deficit.
    • False
    • True

Sorry, quiz 528 is now closed.

You can find the answers and discussion here

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