True or false

6. Precautionary saving refers to a situation in which a household increases its saving in period t in anticipation of lower income in period t + 1. 7. The Taylor rule is normative description of optimal monetary policy which provides a good positive description of historical interest rate behavior. 8. In the neoclassical model, output will react more to an increase in productivity the more sensitive labor supply is to the real wage. 9. The demand for investment depends on the current level of productivity, At, not the expected future level of productivity, At+1. 10. Assuming that Ricardian Equivalence holds, the government spending multiplier in the simple sticky-price New Keynesian model is grater than 1