TRUE or FALSE, Explanation determines the grade.

1. Aggregate demand describes equilibrium in the savings market.
2. A bank run can be best understood as a self-fulfilling prophecy.
3. The qualitative behavior of inflation over the business cycle in the U.S. is best described as follows: Inflation rate increases before a recession starts and then stays stable during the recession.
4. A drawback of automatic stabilizes is that they have high information requirements.
5. Going off gold standard implemented by President Roosevelt helped recovery from the Great Depression.
6. In a crisis, the lender of last resort should lend money only to banks that have enough liquidity.