Question: State whether each statement below is TRUE or FALSE. Briefly explain each answer. a. Lower interest rates in the United States compared to interest rates

 State whether each statement below is TRUE or FALSE. Briefly explain

State whether each statement below is TRUE or FALSE. Briefly explain each answer. a. Lower interest rates in the United States compared to interest rates in Canada will appreciate the Canadian dollar. b. Everything else held constant, suppose the economy is currently producing at the natural rate of output, decrease in government purchases, in the short-run, decreases inflation rate and Increases unemployment rate. c. An increase in bond liquidity decreases interest rates, everything else held constant. d. Everything else held constant, suppose the economy is currently experiencing a recessionary gap, an autonomous monetary policy tightening will return Real GDP to its natural rate

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