Please explain your answers regardless of if the response is True or False a. A $1 decrease in aggregate expenditure will result in exactly a $1 decrease in Income/GDP.

b. A liquidity trap results in monetary policy being more effective.

c. If people on average spend more of each dollar they receive in income, this would cause the marginal propensity to consume (MPC) to decrease and which would decrease in the Keynesian Multiplier.

d. Real Business Cycle Theory (RBCT) models need inelastic labor supply to explain observed changes in unemployment during the business cycle in real life and empirical evidence backs up this claim.

e. A $1 decrease in taxes will have the same effect on GDP as a $1 increase in government spending