Determine whether the following statements are True or False and explain

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Determine whether the following statements are True or False and explain.

1. The wealth, trade, and interest rate effects explain why the short run AS curve slopes upward.

2. The short run Phillips Curve shifts vertically upward during stagflation.

3. The nominal interest rate is greater than the real interest rate when there is deflation.

4. M2 contains coins, paper currency held by non-bank public, demand deposits (checking deposits) and travelers checks.

5. Expansionary monetary policy would be ineffective if banks chose not to lend out excess reserves.