Question: 1
State whether the following are true, false, or uncertain, and provide reasons for your answers. Use appropriate diagrams and/or equations, where relevant, to aid your explanations:
d) An increase in a household's ability to borrow would lead to an increase in their marginal propensity to consume.
e) The only way to reduce government debt in an economy is for the government to continuously run budget surpluses.
f) Countries with aging populations often see decreases in their debt-to-
g) Increasing the degree of central bank independence over time has made it harder for them to resist short-term political pressure leading to upward pressure on inflation.
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