3. True or false? (6 points) For the following statement, fill in the appropriate circle to indicate whether it is true or false. Then, briefly explain in a couple of sentences. (3 points for each, 1 for the answer and 2 for a correct justification.) 3.1. If the law of one price holds, then an increase in the nominal exchange rate (an appreciation of the dollar) must be accompanied by at least one of a decrease in the domestic price P or an increase in the foreign price P*. This statement is (choose one) : O True O False ~ please fill in the correct bubble fully in a dark color 3.2 3.3. When the Fed raises the nominal interest rate, this leads to an increase in exports from the U.S. This statement is (choose one) : O True False ~ please fill in the correct bubble fully in a dark color 3.4