Multiple Choice
In a two-period model with production,an increase in the world real interest rate
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.
Correct Answer:

Verified
Correct Answer:
Verified
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Q7: The current account surplus is not<br>A) the
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