True or false? Indicate the correct statement(s). Absolute PPP may hold even when Relative PPP does not because absolute PPP looks at levels at a specific point in time, and levels are always...

True or false? Indicate the correct statement(s).

Absolute PPP may hold even when Relative PPP does not because absolute PPP looks at levels at a specific point in time, and levels are always comparable regardless of the composition of the consumption bundle.

Given the empirical evidence on the correlation between the nominal and real exchange rate, it is possible to use the nominal financial instruments to hedge real exchange risk.