Question

Q44. Paying off the national debt would redistribute income from the
a. debt holders to the taxpayers
b. taxpayers to the major recipients of transfer payments
c. banks to the taxpayers
d. taxpayers to the debt holders

Q45. When the government uses tax revenue to pay off portions of the national debt, total purchasing power in the economy
a. increases
b. decreases
c. is not affected at any level
d. remains the same but changes individually

Q46. Which of the following would cause a credit to the U. S. balance of payments?
a. a group of U. S. citizens goes to New Zealand for a vacation
b. General Motors pays a dividend to a citizen of Brazil
c. Lloyd's of London makes an insurance payment to a U. S. resident
d. Russia cancels its purchases of U. S. wheat and buys wheat from Argentina

Q47. Under the gold standard, a country experiencing a gold outflow
a. has a balance of payments surplus
b. had an increasing money supply
c. experienced a decline in output
d. experienced an increase in output

Q48. Under the gold standard, a country with a trade deficit should expect
a. gold to flow out of the country to other countries
b. gold to flow into the country from other countries
c. the value of its currency to appreciate
d. the value of its currency to depreciate

Q49. The course of international monetary policy is directed primarily by the
a. Federal Reserve
b. World Bank
c. International Monetary Fund
d. leaders of the Group of Seven nations