1.If the MPS in an economy is 0.2, government could shift the aggregate demand curve leftward by $70 billion by

Multiple Choice

• reducing government expenditures by $14 billion.
• reducing government expenditures by $350 billion.
• increasing taxes by $70 billion.
• increasing taxes by $700 billion

2.

Money Market Mutual Fund Balances Held by Businesses $ 10D Money Market Mutual Fund Balances Held by Individuals 22D Currency in Banks In Currency in Circulation 3D Sayings DepositsJr Including Money Market Deposit Accounts 5D Largedenominated [$l, or more} Time Deposits 13D Smalldenominated [$l, or less} Time Deposits 3D Checkable Deposits 10D Billions Item Dollars Checkable Deposits $ 59? Small Time Deposits 81% Currency E39 HoneyMarket Mutual Funds Held by Businesses 1,45 Savings Deposits, Including Money-Market Deposit Accounts 1,82D HoneyMarket Mutual Funds Held by Individuals 522 Billions ( Item Dollars Checkable Deposits $ 2, 000 Small Time Deposits 350 Currency Held by the Public 80 Savings Deposits, Including Money-Market Deposit Accounts 800 Money-Market Mutual Funds Held by Individuals 600 Money-Market Mutual Funds Held by Businesses 700