Part I. True, False or Uncertain [25Points]For each of the following statements determine if the statement is TRUE, FALSE, or UNCERTAIN. Youmust justify your answer either graphically or in words. no credit will be given without an explanation.[5points each]1."Inasmallopeneconomy,,,."2. "In a small open economy, if consumer confidence falls and consumers decide to save more, then the real exchange raterises, and net exports fall"3. "The natural rate of unemployment cannot be affected by changes in government policy"4. "If an economy lowers its saving rate to reach the Golden Rule level of capital per worker, consumption per worker will immediately fall, but will gradually rise until it reaches the Golden Rulelevel."5. "Assume initially that the world interest rate is equal to the domestic interest rate of asmall openeconomy. A decrease in the world interest rate would lead to a fall in net exports.