In a two-period model with production, a permanent increase in domestic government spending
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.
A
You might also like to view...
Which of the following was true of the U.S. job market between 1929 and 2011? a. The number of jobs created in the organized sector was less than that in the unorganized sector. b. The number employed people increased by less than five percent
c. The average education of workers increased over the years. d. The productivity of workers declined over the years. e. The growth in employment opportunities was slower compared to the growth in population.
Historically, many aspects of U.S. farm policies had their origins in the:
A. Agricultural Extension Service Act. B. Agricultural Adjustment Act. C. Homestead Act. D. Land Grant Act.