If you transfer all of your currency to your checking account, then initially, M1 will ________ and M2 will ________

The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced

a. 5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years. b. 7.5 percent deflation between the first and second years, and 4.3 percent deflation between the second and third years. c. 5.3 percent inflation between the first and second years, and 4.1 percent inflation between the second and third years. d. 7.5 percent inflation between the first and second years, and 4.3 percent inflation between the second and third years.

Assume that the full-employment level of output is $500, and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $450 and at the price level of 100 current aggregate demand is $410. If the government wants to move the economy back to the full-employment level of output and the MPC is 0.75, then it should

A. reduce taxes by $30. B. increase taxes by $30. C. reduce taxes by $90. D. increase taxes by $90.