Human needs and wants are

A currency drain occurs when the

A) Fed increases the required reserve ratio. B) Fed sells U.S. government securities. C) non-bank public increases its holdings of currency outside the banking system. D) banks reduce the number of loans they create with their excess reserves. E) Fed buys U.S. government securities.

A contractionary fiscal policy is likely to

A) reduce a government budget deficit and reduce borrowing by the Treasury. B) increase a government budget deficit and increase borrowing by the Treasury. C) reduce a government budget deficit and increase borrowing by the Treasury. D) increase a government budget deficit and reduce borrowing by the Treasury.