Classify the following five statements as true or false.

(1)An increase in government spending raises money demand.

(2) An increase in corporate taxes would lower the equilibrium interest rate in the money market.

(3) A decrease in education spending would lower the equilibrium interest rate in the money market.

(4) An increase in the interest rate causes the domestic currency to appreciate.

(5) Expansionary fiscal policies raise government deficits and debt.

(6) A drop in income taxes will lower the interest rate in the money market.

(7) A drop in income taxes will raise the exchange rate.

(8) Contractionary fiscal policies raise interest rates.

(9) There is a crowding out effect when corporate taxation becomes lighter.

(10) Expansionary fiscal policy is deflationary in the long run.