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Countries A and B are identical in all respects, except that the initial net international asset position (B0) of country A is lower than that
Countries A and B are identical in all respects, except that the initial net international asset position (B0) of country A is lower than that of country B. 1. It must be the case that consumption in country A is lower than consumption in country B. 2. It must be the case that the trade balance in country A in period 1 is higher than in country B. 3. It must be the case that the current account in country A in period 2 is higher than in country B. 4. All of the above statements are true
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