Assuming that the government has a balanced budget each period, an increase in government spending in period 1, holding government spending in period 2 constant will lead to the following in period 1, Question 7 options: a fall in household savings and a fall in the trade balance. a rise in household savings and a rise in the trade balance. a fall in household savings and a rise in the trade balance. a fall in household savings and no effect on the trade balance. a rise in household savings and a fall in the trade balance