Question 1: Short questions (a) Anticipated technological improvements will reduce the size of bequests that parents leave to their beloved offspring." True, false, or uncertain? Explain. (b) "The Minister of Finance should not bother to engage in tax smoothing if the taxes are non-distortionary." True, false, or uncertain? Explain. (c) Most Europeans with a completed university education are in fact million- aires, even if they don't possess a lot of tangible assets." Defend this proposi- tion by making use of the concept of total wealth. (d) A permanent reduction in government consumption must be accompanied by a reduction in the tax rates, both now and in the future." Explain and evaluate this proposition. (e) Ricardian equivalence does not hold if there exist distorting taxes, even if these taxes are held constant in the Ricardian experiment." Explain and evalu- ate this proposition. (f) Why do people leave bequests in the overlapping-generation model? Under which two conditions would transfers flow from young to old agents? How would a pension system affect your