Just some comprehensive T/F 11-20

11. [T/F] (2pt) In the goods market we learned in class, the investment does not depend on income Y. Let's change this assumption and instead assume that investment goes up when income goes up. In this new model, if the government spending goes up by 1 dollar, the equilibrium output should go up by more than 1/(1 - c1) dollar, where cj is the marginal propensity to consume. 12. [T/F] (2pt) Confidence about the future economy condition (animal spirit) does not matter for a country's GDP in the short run. 13. [T/F] (2pt) Aggregate saving S is an endogeneous variable in the goods market model because government saving, one component of the aggregate saving, depends on the variable of interest, output Y. 14. [T/F] (2pt) if a country exports more goods than what it imports from abroad then this country would also have more capital inflow than capital outflow. 15. [T/F] (2pt) Suppose the price for a one-year bond is 900 dollars and the face value is 1000 dollars, the interest rate is exactly 10%. 16. [T/F] (2pt) Money demand is a decreasing function of interest rate , and money supply is an increasing function of interest rate i. 17. [T/F] (2pt) In the United States, if the Fed sells 1 dollar worth of government bonds, the money supply increases by more than 1 dollar. The increase is equal to money multiplier. 18. [T/F] (2pt) In the United States, if the Fed buys 1 dollar worth of government bonds, the money supply increases by more than 1 dollar. The increase is equal to money multiplier. 19. [T/F] (2pt) In China, mobile payment, such as WechatPay and AliPay, has become more and more popular. People need to hold less and less currencies. This will decrease money multiplier in China. 20. [T/F] (2pt) Every point on the LM curve is a goods market equilibrium, and every point on the IS curve is a money market equilibrium