True or False Questions (Please answer either true or false for the given questions)

1. In the Keynesian world, an expansionary fiscal policy would always crowd-out private investment, if monetary policy not accommodative.
2. In a liquidity trap situation, monetary policy is totally ineffective.
3. When LM = 0.5Y-50i (where Y = 5000, i= 5%), the real money supply should be 2250.
4. The AD curve is a locus of points of simultaneous equilibria of goods and money markets.
5. In a flexible exchange rate system, with perfect capital mobility, a devaluation will increase GDP but interest rate will remain unchanged.
6. The biggest policy challenge for most countries now is managing economic contraction.
7. COVID19 crisis has reduced trade to/from the Pacific region
8. The following are constraints for economic development in Samoa: subsistence agriculture, limited tourism and lack of domestic private investment.
9. If I = I0-bi, then the value of b will determine the impact of monetary policy on investment.
10. In order to reduce market interest rate, the central bank conducts open market sale of bonds.