In an open economy, if the long-run budget constraint is upheld, in order to keep consumption stable over time a nation will find it desirable to

Select one:

save during temporary negative shocks and borrow during temporary positive income shocks.

run a trade deficit during negative temporary shocks and run a trade surplus during positive temporary shocks in income.

forego borrowing to maintain financial stability, allowing consumption to fluctuate.

run a trade surplus during negative temporary shocks and run a trade deficit during positive temporary shocks in income.

save even if it is just a little during each period.