Indicate whether you consider each of the following statements to be true, false or uncertain,

and then explain your answer.

Suppose Congress decides to raise transfer payments (such as unemployment

insurance) with TR > 0, but to lower government spending on goods and services G < 0

by an equal amount. That is, it undertakes a change in fiscal policy such that TR + G =

0. In the context of the income-expenditure model, the economy's equilibrium output will

remain unchanged.