Which of the following countries went through a financial crisis in 1997?

In a small open economy, an increase in government spending, while taxes remain the same, will be accompanied by

A) a decrease in private investment and an increase in privates saving. B) an increase in private investment and a decrease in private savings. C) a decrease in national savings and an increase in foreign borrowing. D) an increase in national savings and a decrease in foreign borrowing.

Which of the following statements is false?

A) Aggregate demand is a specific dollar amount, such as $400 billion. B) At a given price level, anything that changes total expenditures changes aggregate demand. C) Total expenditures rises if consumption rises, ceteris paribus. D) Total expenditures rises if investment spending rises, ceteris paribus.