Are the following statements TRUE or FALSE? Explain.
a. (5 Points) “In the long term, a one-percent faster growth of Russian money supply results in a one-percent higher depreciation rate of the US dollar relative to the Russian Ruble (all else equal).”
b. (5 Points) “If the China exhibits faster productivity growth in a large non-traded service sector, such as health care, than in any other sec- tor, its real exchange rate appreciates relative to other economies.”