In the Monetary Small Open-Economy Model with a Fixed Exchange

Multiple Choice

In the monetary small open-economy model with a fixed exchange rate, a temporary decrease in domestic total factor productivity in the absence of any other shocks

A) increases the current account surplus and increases the domestic money supply.
B) increases the current account surplus and decreases the domestic money supply.
C) increases the domestic money supply and decreases the current account surplus.
D) decreases the domestic money supply and decreases the current account surplus.
E) decreases the current account surplus and increases the price level.