If a country went from a government budget deficit to a surplus, national saving would
a. increase, shifting the supply of loanable funds right.
b. increase, shifting the supply of loanable funds left.
c. decrease, shifting the demand for loanable funds right.
d. decrease, shifting the demand for loanable funds left.
a
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A Keynesian economist believes that
A) if the economy was left alone, it would rarely operate at full employment. B) the economy is self-regulating and always at full employment. C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic. D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.
What are the five major channels, which developing countries use to finance their external deficit?
What will be an ideal response?