True or False:
1. Savings and money spent on imported goods will each reduce the size of the multiplier because each reduces the fraction of a given increase in income that will go to additional purchases of domestically produced consumption goods.
2. Supply-siders would encourage government to reduce individual and business taxes, deregulate, and increase spending on research and development.
3. Supply-siders' primary focus is on stabilizing aggregate demand in the short run.
4. A lower marginal tax rate will raise after-tax earnings, improving productive incentives.
5. Higher marginal tax rates will lead investors to spend more scarce resources looking for tax shelters, which harms the economy as high-return but highly taxed investments give way to lower-return tax shelters.
6. If greater research and development leads to new technology and knowledge, it will shift the short- and long-run aggregate supply curves to the right.
7. If tax rates are reduced, it will affect aggregate supply but not aggregate demand.
8. One of the advantages of automatic stabilizers is that they take place without the necessity for deliberations in Congress or the executive branch of the government.