In a Two-Period Model with Production,a Temporary Increase in Domestic

question 21

Multiple Choice

In a two-period model with production,a temporary 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.

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