In the classical model, less consumption and more savings would
a. increase aggregate supply and output.
b. reduces aggregate demand and output..
c. decrease real interest rates and output.
d. cause the price level to rise with no effect on output.
e. have no effect on output or the price level.
A
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A deficit in a country's current account means that:
a. the country is running a net deficit in its financial account. b. the country is a net lender to the rest of the world. c. the country is running a net surplus in its financial account. d. the country will have a positive value of net exports. e. the domestic production is in excess of domestic spending.