Section A. True or False questions. Provide economic intuition or draw relevant diagrams to justify your answers. No marks are awarded if you rnerely state True or False as your answer. Restrict your answer to less than 5i] words per question. 3. The assumptions of free capital mobility and a small open economy dictate that the world real interest rate is equal to the domestic real interest rate. 5. If the velocity of money is constant, money supply increases by 5%, output growth rate is 3%, and nominal interest rate is 5% then real interest rate is 3%