True or false

[50 points, 5 points each question] Explain briefly why the following statements are true or false. Answers without explanation will be counted as wrong. 1) Ricardian Equivalence says that, even in a closed economy, the time pattern of taxes does not affect the equilibrium in the economy, and in particular the consumption decision, as long as agents can borrow and lend freely.
2) If Ricardian Equivalence holds, then the time pattern of taxes does not affect the Current Account. [focus on the endowment economy case]
3) An increase in the real interest rate always implies that individuals are going to save more.
4) If Mexico was an economy with perfect capital mobility with respect to the rest of the world, investment (I) in Mexico would not depend at all on the amount of resources Mexicans decide to save (S).
5) If individuals face borrowing constraints, that is, they cannot borrow against their future income, then Ricardian Equivalence may not hold.
6) Countries which expect their income to grow in the future will tend to run Current Account deficits - other things being equal.
7) Mexico is currently running a Current Account deficit. The government says it wants to raise taxes. This is going to improve the Current Account.
8) If you want to compare living standards across countries, all you have to do is to compute the per capita GDP, expressed in a common currency (say US$), for each country, and compare them.
9) In a closed -endowment- economy, consumption and the real interest rate should move in opposite directions.
10) The country of Bieneysia is very concerned about the possibility of financial crises. For this reason, the government wants to impose very strict capital controls (no Bieneysian can invest abroad, and no foreigner can invest in Bieneysia), so that the Capital Account of Bieneysia will always be in balance. This will imply, however, that the country will not be able to import from abroad more than it is exporting.