Question: TRUE OR FALSE? plz explain . Thanks! There are two countries in the world, Australia and Japan. Suppose that the central bank of Australia lowers

TRUE OR FALSE? plz explain . Thanks!

There are two countries in the world, Australia and Japan. Suppose that the central bank of Australia lowers the real interest rate, while the central bank of Japan raises the real interest rate. In this case, the nominal exchange rate (Yen/Dollar) increases.

Answer true or false. Please briefly explain your answer.

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