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

1. 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.

2. Other things being equal, an increase in productivity of a country will lead to an increase in the value of the countrys currency relative to the currency of another country.

3. During the Christmas holiday season, depositors typically withdraw more currency from their accounts. This implies that the money multiplier rises during the Christmas season.