Question: Indicate whether the following statements are true, false or uncertain. In each case you must provide a brief explanation for your answer. (Marks are only

Indicate whether the following statements are true, false or uncertain. In each case you must provide a brief explanation for your answer. (Marks are only given for your explanation Eyour answer is correct.) Consider the following model of the IS curve without an international sector: Consumption: C, H7, = a; EAR, F), 5' :5 0; Investment: I, If; = E,- EAR, F), E,- > D; and Government expenditure: G, = 55?, With this formulation, the investment multiplier will be smaller than the "standard\" formula. Note that your answer must start with "True\
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