Indicate whether you agree, disagree or are uncertain about the validity of these statements.Explain your reasoning using economic concepts and analysis. Graphical analysis is recommended but not absolutely required.

1."Budget deficits may be helpful or harmful to an economy."

2."If the U.S. can produce more goods using fewer resources than China, then the U.S. cannot gain by trading with China."

3."The Federal Reserve has the tools to influence the amount of money in the economy, but the banking system ultimately determines whether the money supply increases or decreases."

4."The monetary policy response of the Federal Reserve in response to the Covid-19 recession is essentially the same as the Federal Reserve response to the Great Recession of 2007-09."

5."Restricting foreign imports into the U.S. with tariffs or quotas will increase total employment in the U.S." [Note: For this question, Issue 31 in the Miller-Benjamin text is recommended as supplementary reading to Chapter 18 in the Baumol-Blinder text]

6."The economic arguments in favor of free international trade outweigh the arguments for protectionist trade policies." [Note:For this question, Issues 30 and 31 in the Miller-Benjamin text are recommended as supplementary reading to Chapter 18 in the Baumol-Blinder text]