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In a Two-Period SOE Model with Production, a Negative Total

Question 7

Multiple Choice

In a two-period SOE model with production, a negative total factor productivity shock abroad


A) increases foreign output and decreases domestic output.
B) decreases foreign output and increases domestic output.
C) increases foreign output and increases domestic output.
D) decreases foreign output and leaves domestic output unchanged.
E) decreases foreign output and decreases domestic output.

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