Question: Please answer the question by computer, so i can see it clearly, thank you!!! TRUE/FALSE. Explain your answer if FALSE: 1(a) A failure of the

Please answer the question by computer, so i can see it clearly, thank you!!!

TRUE/FALSE. Explain your answer if FALSE:

1(a) A failure of the Law of One price implies a failure of Relative PPP

1(b) Under sticky prices and a floating exchange rate, permanent fiscal policy is an ineffective tool for counteracting unexpected negative output shocks.

1(c) .If assets are perfect substitutes, a central banks open market operations with domestic assets can have unintended effects on its exchange rate.

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