Section A: Question 1-4, answer True, False or Uncertain. Briey explain your answer. (each question is worth 1.5 marks)

1. In the OLG model of money, money serves as a means of payment.

2. In the OLG model of money, the initial old prefers a constant money supply to a growing money supply.

3. When the government uses new money to transfer to the old individuals, monetary equilibrium allocation cannot achieve the golden rule allocation.

4. The government can print any amount of new money, but each individuals demand for money in real terms may or may not increase when the government increases the growth rate of money supply.