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your answer. 11. According to the classical macroeconomic model, an increase in government spending will lead to an increase in real economic activity. 12. According to the J-curve, it is expected that a country's Bop position improves and then starts deteriorating following a devaluation of the currency. 13. According to the Marshall-Lerner condition, if the sum of the elasticity of export and imports with respect to the real exchange is greater than one, then depreciation will lead to an improvement in the trade balance. 14. A professor of sociology at the University of Lusaka is presenting a lecture on the effectiveness of monetary and fiscal policies in modern era. He argues that according the IS-LM-BOP model with a fixed exchange rate regime and perfect capital mobility, fiscal policy is effective. 15. According to the Solow growth model, if the economy's saving rate is 0.3, the tear and wear is 0.1 and there are 4 units of capital per worker then the country has reached a steady state level of capital stock.