Question
Hi can you help me with this true or false question and also include a brief explanation too. thank you. 1. In accordance with the
Hi can you help me with this true or false question and also include a brief explanation too. thank you.
1. In accordance with the IS-LM model, if money demand is perfectly interest inelastic, then the fiscal policy has no effect on real GDP.
2. The Fisher model of consumption predicts that the current consumption of savers is unambiguously lower after a fall in interest rates.
3. If real interest rates become negative, the neoclassical model of investment predicts there is now no limit to how much capital firms want to purchase.
4. Monetary policy set with discretion features an inflation bias because commitment to a rule could achieve lower inflation at no cost in terms of higher unemployment.
5. In the AK model of economic growth, a country that raises its saving rate has a permanently higher growth rate of income per person.
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