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In the Two-Period SOE Model, Equal Increases in Current and Future

Question 39

Multiple Choice

In the two-period SOE model, equal increases in current and future income imply that


A) the current account surplus increases.
B) we can't say what happens to the current account surplus.
C) the current account surplus decreases.
D) C + G decreases.
E) there is no change in the current account surplus.

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