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In a Two-Good,two-Period Model with Trade,an Increase in the World

Question 59

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In a two-good,two-period model with trade,an increase in the world real interest rate

In a two-good,two-period model with trade,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.
E) increase aggregate consumption and have no effect on the current account surplus.

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