In a Two-Good,two-Period Model with Trade,an Anticipated Future Increase in Domestic

question 37

Multiple Choice

In a two-good,two-period model with trade,an anticipated future increase in domestic total factor productivity

• A) increases domestic output and increases the current account surplus.
• B) increases domestic output and decreases the current account surplus.
• C) has no effect on domestic output and increases the current account surplus.
• D) has no effect on domestic output and decreases the current account surplus.
• E) increases domestic output with no change in the current account surplus.

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