In a Two-Period Model,holding Everything Else Constant,an Increase in Current

question 22

Multiple Choice

In a two-period model,holding everything else constant,an increase in current taxes

• A) unambiguously increases the current account surplus.
• B) unambiguously decreases the current account surplus.
• C) has an uncertain effect on the current account surplus.
• D) has no effect on the current account surplus, as long as Ricardian equivalence holds.

---

Definitions:

Written Messages

Forms of communication that involve texts, such as emails, letters, reports, or social media posts, allowing for asynchronous exchange of information.

Error-free Product

A product or result that is free from mistakes, inaccuracies, or defects, often achieved through meticulous checking and quality control.

Discriminatory Language

Language or phrasing that makes unfair distinctions or shows prejudice against individuals or groups based on personal characteristics such as race, gender, or age.

Bias Avoidance

Efforts to recognize, reduce, and remove personal and systemic biases in decision-making processes or information presentation.