In a two-period model with production, an anticipated future increase

In a two-period model with production, an anticipated future increase in domestic total factor productivity

A) increases domestic output and increases the current account surplus.
B) increases domestic output and decreases the current account surplus.
C) has no effect on domestic output and increases the current account surplus.
D) has no effect on domestic output and decreases the current account surplus.

 

ANSWER

D

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