Question: Please indicate whether the following statements are True, False or Uncertain (1 mark). Support your answers with detailed justifications (2 marks). 5) According to the

Please indicate whether the following statements are True, False or Uncertain (1 mark). Support your answers with detailed justifications (2 marks).

5) According to the asset market approach and holding other things being equal, the value of domestic currency relative to a foreign currency will increase if the interest rates increase in domestic market.

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