Determine whether the following statements are True, False or Uncertain and Justify your response. You can write, calculate, or draw to explain your answer. Marks are awarded for stating the correct response True/False/Uncertain (2 marks) and providing an accurate justification (3 marks).

a) With identical consumers, pay-as-you-go social security may be Pareto improving.

b) In a model with money neutrality, money supply should be increased by 1% to obtain a 1% increase in real output.

c) Bad news about future total factor productivity has the same effect as a reduction in current total factor productivity.

d) A reduction in the depreciation rate will increase investment demand and the optimal investment schedule will shift to the right.

e) If the real interest rate rises, lifetime wealth declines, causing leisure to decline, and labour supply to rise, thereby causing a leftward shift in output supply.

f) The interest rate will remain constant when z' and K increase simultaneously.

g) The demand for money will fall due to lower interest rates on transactions accounts at banks.