In a Two-Period SOE Model with Production, an Increase in Current

Multiple Choice

In a two-period SOE model with production, 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.