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C. Inter-temporal Trade. Below are two PPFs, for the Home country and Foreign country. Second period production and consumption is on the vertical axis and

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C. Inter-temporal Trade. Below are two PPFs, for the Home country and Foreign country. Second period production and consumption is on the vertical axis and first period production and consumption is on the horizontal. Assuming near to identical tastes, the autarkic outcome for both countries are given Now determine what happens when inter-temporal trade is allowed between the two countries. Make sure that you (1) depict production and consumption for both countries with trade (points Q and D), (i) indicate what is exported and imported, () state which country is the lender and which one is the borrower, and (iii) state whether each country's current and capital account is running a surplus or a deficit. Q. CIC* CIC Q g Current Account: Capital Account: Current Account: Capital Account

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