True / False / Uncertain - explain if possible

1. If the current CAD/UDS exchange rate if 0.7708 US dollars per Canadian dollar and EPPP = 0.83, the Canadian dollar is undervalued.

2. A higher real interest rate r* would lead to a domestic real currency depreciation.

3. A higher domestic nominal interest rate would lead to a domestic currency nominal depreciation.

4. Inflation is equal to money supply growth in a growing economy.

5. Flexible nominal exchange rate can compensate lack of downward wage flexibility as a flexibility as an adjustment mechanism to Sudden Stops.

Need a second opinion to verify with mine!Thx