International Monetary Policy Question

A government must decide whether or not to defend an exogenously specified exchange rate parity. In making this decision, the central bank maximizes the following social welfare function: SW = R - 2(s - s)2 if s = s SW = 4(s* - 5)2 ifs = 8* where R is a fixed "reputation" benefit the central bank obtains if it keeps the peg; s* = 3 is the ideal exchange rate; s is the expected exchange rate; s = 1 is the value of the exchange rate to which the government is committed. (a) [3 points] If the reputation benefit is R = 20, will there be a devaluation? (b) [2 points] If the reputation benefit is increased to R = 25, will there be a devaluation