Please help with the following mcq

5. Suppose a country with a fixed exchange rate decides to reduce the price of its currency. This change in policy is called a) An appreciation b) Adepreciation c] Adevaluatiou d) Arevaluation a. Assume that the domestic nominal exchange rate decreases by 4%. If prices {both domestic and foreign do not change). we know that a] Foreign goods are now relatively cheaper b) Foreign goods are now relatively more expensive c) Domestic goods are now relatively cheaper d) None of the above 7. Imagine that you are responsible for policymaking in an economy that is experiencing a deep recession. You and your colleagues announce a number of measures {like those in Roosevelt's iNew Deal') that you tell everyone will boost demand and output. Why does it matter whether the public believes your announcement? a} It does not. If the measures are appropriate, aggregate demand will increase. regardless of what anyone thinks. is} People will feel more condent about the future and increase their spending. which will reinforce the actions of govemment. c} If they really believe that you are going to increase government spending. they may worry that taxes will have to rise in future. They will reduce their spending in order to save more for the future tax demands, which will undermine your strategy. It might be better if they simply ignored your promises. d} You are more likely to be re-elected if people believe that you tried to do something