Consider the two-country model we use to study large open economies. Suppose there is an increase in world interest rate. Then, O the current account balance of the home country will increase. O the current account balance of the home country will not be affected. the current account balance of the home country will decrease. O the current account balance of the foreign country will decrease.Question 22 (1 point) Consider the two-country model we use to study large open economies. Suppose there is a temporary increase in the domestic country's government expenditure. If there are no other changes, we can expect that the aggregate investment of the foreign country will increase. the aggregate saving of the foreign country will decrease. the world interest rate will remain unchanged. O the world interest rate will increase.Consider the two-country model we use to study large open economies. Suppose there is an increase in the taxes that domestic firms pay. If there are no other changes, we can expect that the aggregate saving of the foreign country will increase. the world interest rate will remain unchanged. the aggregate investment of the foreign country will decrease. the world interest rate will decrease Question 24 (1 point) Consider a small open economy. Suppose the government cuts taxes without changing its expenditure. We can expect that the current account balance will decrease if the Ricardian equivalence does not hold the capital account balance will decrease if the Ricardian equivalence holds. the current account balance will decrease if the Ricardian equivalence holds. the capital account balance will decrease if the Ricardian equivalence does not hold