1. True/False Statements Determine whether each statement is true, false, or uncertain and explain why. Answers with no explanation will receive no points. (a) Difference-in-differences yields the causal effect of interest, regardless of whether there are parallel trends between the treatment group and the control group. (b) On February 7, the Congressional Budget Office released its updated budget outlook. Download it here. Look at the top half of Table 1-1. Compute the average interest rate on government debt in 2034 ryg34 by dividing 2034 Net Interest by 2033 Debt Held By The Public. Compute the 2034 GDP growth rate gs934 by comparing 2033 GDP to 2034 GDP. True/False/Uncertain: If the interest rate on government debt r, and the GDP growth rate g; stay constant forever at their 2034 levels, the government can run a permanent primary deficit while maintaining a stable debt to GDP level. (c) If Berkeley repeals its soda tax, the long-run incidence will likely be on Berkeley land owners. (Assume that Berkeley does nothing valuable with soda tax revenue. ) (d) The optimal linear tax rate should be large when everyone has linear utility in consump- tion