10)

According to the models developed in class, a temporary cut in the income tax rate has asmaller effect on output in a closed economy than in a small open economy because ina small open economy the expected real interest rate won't rise as much and therefore there will be less crowding out of investment.

True or false?

11)

According to the largeopen economy model developed in class, a permanent increase in total factor productivity will have an ambiguous effect on the expected real interest rate.

True or false??

12)

A temporary increase in government spending has a bigger negative impact on net exports in a small open economy than in a large open economy.

true or false???

NO EXPLANATIONS ARE NEEDED