Question: Explain if the following statement is true or false:In the two-period model reviewed in class, both the Current Account and the Trade Balance in period

Explain if the following statement is true or false:"In the two-period model reviewed in class, both the Current Account and the Trade Balance in period 1 improve (i.e., increase) with an ANTICIPATED increase in the endowment of period two (Q1=0 and Q2>0).'' For simplicity, assume the following lifetime utility function: U(C1,C2)=ln(C1)+ln(C2)

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