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In a Two-Period Model with Production,an Increase in the World

Question 11

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.

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