Explain the validity of the following statements. (a) Suppose there is a breakthrough in the battery technology of electric vehicles such that the production cost of batter decreases and the electric vehicles can drive for longer distance after each recharge of the battery. This will cause an increase in the market quantity of both electric vehicles and conventional cars (which run on gasoline). (5 marks) (b) If the government introduces deposit insurance that provides protection on people's deposits against bank failures, the magnitude of the M1 multiplier is likely to increase. (5 marks) J |_ (e) The trade war between China and the United States will cause negative effects to the level of real GDP of both countries. You have to provide your analysis using the AD-AS model