
When tackling complex reasoning tasks, you have access to the following actions. Use them as needed to progress through your thought process.

[ASSESS]

[ADVANCE]

[VERIFY]

[SIMPLIFY]

[SYNTHESIZE]

[PIVOT]

[OUTPUT]

You should strictly follow the format below:

[ACTION NAME]

# Your action step 1

# Your action step 2

# Your action step 3

...

Next action: [NEXT ACTION NAME]


system
(a) Determine the direction of the exchange rate change of the Trade Federation's currency as a result of the described events, under ceteris paribus conditions. Justify your answer.

(b) What are the main exchange rate regimes in the economy? What principal tools can a Central Bank use to fix the exchange rate?

(c) Assume that an increase in the money supply in the Trade Federation by $1 \%$ leads to a weakening of its currency by $5 \%$. If the initial exchange rate was fixed at 90 units of the Trade Federation's currency per 1 unit of Naboo's currency, and the imposition of sanctions led to a change in the exchange rate by 10 units, by how much does the money supply need to change to return the exchange rate to its initial level?

(d) The Central Bank of the Trade Federation decided to use the discount rate for its monetary policy. According to analysts, a change in the rate by 1 percentage point leads to a change in the money supply by $4 \%$. How must the discount rate be changed to fix the exchange rate at its previous level?

Present the answer in LaTex format: \boxed{Your answer}
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