4. Imperian Wealth Effects [10 points] Assume that the country of Imperia (whose currency is the Imperian dollar or I-dollar) has external assets of $20,000 billion, 50% of which are denominated in euros (6), the rest in I-dollars(I$). It also has external liabilities of $30,000 billion, 20% of which are denominated in euros (6), and the rest in I-dollars (I$). Assume the exchange rate of Imperia is currently 1 Imperian dollar = 1 euro. a. What is Imperia's external wealth in Imperian dollars? Is Imperia a net creditor or debtor? [2] b. What is Imperia's net position in euro-denominated assets in Imperian dollars? [2] c. Suppose the Imperian dollar depreciates to 1.2 Imperian dollars per euro. What is the change in Imperian external wealth (in Imperian dollars)? [2] d. Compared to a scenario with no net FX exposure, is this Imperian depreciation likely to be more or less expansionary? Briefly explain. [4]