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

question 59

Multiple Choice

In a two-good,two-period model with trade,an increase in current 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) decreases domestic output and increases the current account surplus.
• D) decreases domestic output and decreases the current account surplus.
• E) decreases domestic output and decreases the marginal product of capital.

---

Definitions:

Fixed Assets

Durable physical assets employed in the running of a company, which are not anticipated to be expended or turned into cash within one fiscal year.

Disposal Of A Segment

This refers to the selling, discontinuing, or otherwise getting rid of a portion of a company's operations or divisions.

Earnings Per Share

A financial metric that divides a company's net earnings available to common shareholders by the average outstanding shares, indicating the profitability per share.

Leverage

The use of borrowed capital or debt to fund an investment, aiming to expand asset base and generate returns on risk capital.