Suppose That Chile Has a Government Budget Surplus, and Then

question 6

Multiple Choice

Suppose that Chile has a government budget surplus, and then goes into deficit. This change would

• A)increase national saving and shift Chile's supply of loanable funds left.
• B)increase national saving and shift Chile's demand for loanable funds right.
• C)decrease national saving and shift Chile's supply of loanable funds left.
• D)decrease national saving and shift Chile's demand for loanable funds right.

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Definitions:

National Elections

Elections that determine the leadership and direction of a nation, often including the election of presidents, prime ministers, and legislative bodies.

Mohammed Mossadegh

An Iranian Prime Minister in the early 1950s known for his role in the nationalization of the Iranian oil industry and his subsequent overthrow in a coup d'état.

Nationalize

The process by which a government takes control of a private industry, business, or assets, often to ensure public access or control.

Third World Countries

A term historically used to describe nations that were neither aligned with the capitalist First World nor the communist Second World during the Cold War, often referring to developing countries.