State whether each statement below is TRUE or FALSE. Briefly explain each answer.   a. If Canadian assets become less liquid compared to European assets, Canadian dollar will depreciate. b. Suppose the economy is currently experiencing an inflationary gap, an autonomous monetary policy easing will bring RGDP back to its natural rate. c. Holding everything else constant, if stocks become riskier compared to bonds, interest rate will increase? d. Everything else held constant, suppose the economy is currently producing at the natural rate of output, increase in interest rate, in the short-run, decreases inflation rate and increases unemployment rate.

Q: F1

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