In the market clearing model with world markets for goods and credit, an increase in technology, A, in the home country causes:

Name: In the market clearing model with world markets for goods and credit, an increase in technology, A, in the home country causes:
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An increase in technology in the home country leads to an increase in productivity, which in turn leads to an increase in exports and a decrease in imports. This results in a larger current account surplus.

In the Market Clearing Model with World Markets for Goods