In a Two-Period SOE Model with Production, an Increase in Current

question 47

Multiple Choice

In a two-period SOE model with production, an increase in current domestic total factor productivity

• A)increases domestic output and decreases the current account surplus.
• B)decreases domestic output and decreases the marginal product of capital.
• C)decreases domestic output and decreases the current account surplus.
• D)decreases domestic output and increases the current account surplus.
• E)increases domestic output and increases the current account surplus.

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Definitions:

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