An asset for a commercial bank is its loans

(a) What happens to the fundamental value of a country's exchange rate when it raises its money supply in a fixed exchange-rate system?

Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value? (b) What happens to the fundamental value of a country's exchange rate when the foreign country raises its money supply? Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value? (c) So, if a country wants to maintain its official rate equal to its fundamental value, what must it do when the foreign country raises its money supply? What happens to inflation?

If personal income tax rates are decreased in an attempt to stimulate spending, we should expect to see

a. an increase in consumption and an increase in GDP. b. an increase in consumption and a decrease in GDP. c. a decrease in consumption and a decrease in GDP. d. a decrease in consumption and an increase in GDP.