True or False, and explain it.
- In practice, the Bank of Canada sets a target for real money balances and then the interest rate automatically adjusts to ensure this target is met
- In the Mundell-Fleming model, in general the level of domestic investment could depend both on foreign and domestic economic conditions.
- The Solow model attempts to explain growth in output over the very long run through increases in the capital stock, reductions in the unemployment rate, and increases in technology