Compared to those in low-income countries, the residents of countries with high per person incomes nearly always

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.

To increase the money supply, the Fed purchases government securities from banks, paying for them with new reserves

a. True b. False Indicate whether the statement is true or false