Suppose That the Rest of the World Experiences an Economic

Multiple Choice

Suppose that the rest of the world experiences an economic boom causing an increase in foreign output (Y*) .This increase in Y* will not cause which of the following to occur?

A) the domestic country's output to increase
B) the domestic country's consumption to increase
C) the domestic country's output to increase and its trade balance to worsen as imports increase
D) all of the above
E) none of the above