11. The national debt must eventually be paid off to?a. ourselves, which implies we collectively can expect an increase in income in the future.b. the government, which implies additional revenue to the government in the future.c. foreigners, which means a loss of freedom in the future.d. no one, as long as there is confidence in the continuing viablility of the government’s taxing powers.12. Over a decade or longer, a government budget deficit?a. reduces national saving and stimulates economic growth.b. reduces national saving and economic growth.c. increases national saving and economic growth.15. The quantity theory of money assumed?a. that an increase in prices causes a proportionate increases in real GDP.b. a fall in the velocity of money causes a proportionate increase in the money supply.c. a rise in money supply causes a proportionate fall in velocity.d. the fraction of income people desire to hold in the form of money is a constant.
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