Section A. True or False questions. Provide economic intuition or draw relevant diagrams to justify your answers. No marks are awarded if you rnerely state True or False as your answer. Restrict your answer to less than 50 words per question. 1. Financial innovation that increases the velocity of money increases aggregate demand, prices and output in the shortru n. [Hint: show your answer with a diagram] 2. In a large open economy, the expansionary fiscal policy brings about a deterioration in the net exports as worse off as the closed economy. [Hint: show your answer with a diagram]