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

1. Under perfect capital mobility, interest rates (id, if) can permanently vary, if monetary policy is tightened.
2. The degree of capital mobility could be impacted by differences in income tax regimes.
3. A fixed exchange rate is best for small economies like Fiji, at least during the COVID19 crisis
4. A devaluation can cause inflation and lead to a raise in external debt.
5. A BOP surplus will increase foreign reserves is the domestic economy operates under flexible exchange rate system.
6. If nominal GDP was 1500 and real was 1450, the implicit GDP deflator would imply a moderate rate of inflation of about 3%.
7. If the goods market equilibrium was Y = 2500-50i, and government expenditure was increased by 50, a possible new IS curve would be Y = 2750-50i, provided Gwas 2.5
8. The aggregate expenditure multiplier in ADAS is larger than that of the ISLM model.
9. The rate of interest (i) is determined in the bonds market
10. A possible expression that can model government spending is G = Gt-1where (t) is current year.