In a Two-Period SOE Model with Production, an Anticipated Future

Multiple Choice

In a two-period SOE model with production, an anticipated future increase in 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) has no effect on domestic output and increases the current account surplus.
D) has no effect on domestic output and decreases the current account surplus.
E) increases domestic output with no change in the current account surplus.