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Explain and discuss whether the following statements are True or False . EXPLAIN! Do not just write true, or false, clearly explain.
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Question

Explain and discuss whether the following statements are True or False.

EXPLAIN! Do not just write true, or false, clearly explain.


a.The national income identity implies that budget deficits necessarily cause trade deficits.


b.     A real depreciation of domestic currency always leads to an immediate improvement in trade balance.
  
c.      The stricter enforcement of anti-trust laws will lead to an increase in the natural level of output without any change in real wage.


d.     The aggregate demand relation is downward sloping because at a higher price level, consumers wish to purchase fewer goods.


e.      Fiscal policy cannot affect investment in the medium run because output always returns to its potential level in the medium run.

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