1. Determine whether each of the following statements is true, false, or uncertain. Explain your answer carefully. Include an IS-LM diagram in your explanations for each part.
   1. An exogenous increase in saving raises investment
   2. An increase in government spending reduces disposable income
   3. An exogenous reduction in money demand raises investment spending but reduces saving
   4. Because of the crowding out effect, an increase in government spending may lead to no change in equilibrium income
   5. The greater the sensitivity of investment to changes in the interest rate, the greater is the effect on monetary policy on GDP