1. ?In which of the following situations is a budget surplus most likely to occur?

?When fiscal policy is contractionary and the economy is expanding

?When fiscal policy is expansionary and the economy is contracting

?When fiscal policy is expansionary

?When the economy is contracting

2. ?The government of Crossland wants to influence its exchange rate. It will do so by buying and selling:

?Commodities

?Transfers

?Goods and services from the current account

?Currencies in its official reserves