In a Two-Good,two-Period Model with Trade,an Increase in Domestic Government

Multiple Choice

In a two-good,two-period model with trade,an increase in domestic government spending

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) increases domestic output with no change in the current account surplus.