5. Applying the economic theories of the equilibrium determination of inter- est rates we have studied, explain clearly whether each of the following statements is (i) unambiguously true, (ii) unambiguously false, or (iii) true under some circumstances but not all (a) "A sharp drop in stock prices would imply, all else the same, an increase in the yield to maturity on both long-term and short-term bonds." (b) "The default-risk premium is likely to rise in an economic expansion and fall as the economy moves into a recession." (c) "Increased government spending on goods and services (with no other policy changes) implies a decrease in equilibrium interest rates." (d) "An increase in federal income taxation (with no other policy changes) tends to push yields on bonds up." (e) "Although the Federal Reserve does not directly set market interest rates, it can increase interest rates on both short-term and long-term securities by reducing its supply of liquidity to the market." (f) "An upward sloping yield curve necessarily reflects an expectation that short-term interest rates will rise in the future