For each of the statements below write true or false and then provide a short

explanation for your answer.

a. The unconditional convergence in the Solow model implies that countries with lower GDP per capita grow slower.

b. A decrease in the interest rate makes future leisure relatively more expensive.

c. The income effect of an increase in the interest rate increases the consumption for a lender.

d. A permanent positive change in technology leads to a temporary increase in the real consumption.

e. If the Ricardian equivalence holds then a tax cut would increase private savings