1. Because ________ in the government budget deficit increase thereal interest rate, budget deficits can ________ firminvestment.

   		decreases; increase
   		increases; decrease
   		decreases; decrease
   		increases; increase

2. When banks gain ________, they can ________ their loans; and themoney supply ________.

   		withdrawals; decrease; expands
   		reserves; increase; expands
   		withdrawals; increase; expands
   		reserves; increase; contracts