Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern Monetary Theory (MMT) and its application to macroeconomic thinking. Comments as usual welcome, especially if I have made an error.
Larger fiscal deficits as a percentage of GDP typically mean that there are less real resources available for other productive uses.
The answer is True.
It is clear that at any point in time, there are finite real resources available for production. New resources can be discovered, produced and the old stock spread better via education and