-The higher the tariffs between two countries, the less purchasing power parity will hold.

True or False

-Holding official reserves constant, a deficit in the current account means a surplus in the capital account.

True or False

-Purchasing power parity holds best when prices are free to adjust and there are no trade barriers.

True or False

-Expansionary fiscal policy financed by borrowing is more effective in affecting real growth in a closed economy than in an open economy.

True or False