True, false or uncertain. Explain why.
1) TFU: Because of diminishing returns to consumption, a household would be less than twice as happy if nominal income and nominal prices all doubled.
2) TFU: an increase in the interest rate makes all households worse off.
3) TFU: if a household is neither borrowing nor lending, any change in the interest rate makes them better off.
4) TFU: The difference between the price of a nominal bond paying off $1 in nominal terms tomorrow and the price of a real bond paying off $1 in real terms tomorrow is the price level.