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

question 35

Multiple Choice

In a two-good,two-period model with trade,an increase in domestic government spending

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

---

Definitions:

Decimal Places

The positions or digits to the right of the decimal point in a decimal number, indicating fractions of a whole.

Divide

To Divide means to split or separate a number or quantity into two or more parts, often to distribute it evenly or to calculate a ratio or proportion.

Word Processing

The use of computer software to create, edit, and print documents.

Office Administrator

An individual responsible for overseeing the daily operations of an office.