9. (3 points) Consider a country that has a large fraction of its liabilities in terms of foreign currency (e.g. Turkey borrowing in U.S. dollars). Assume that external wealth is quoted in terms of home (Turkish) currency. Everything else the same, an appreciation of the home currency will (a) increase Turkey's external wealth (b) reduce Turkey's external wealth. (c) result in negative valuation effects in Turkey's external wealth. (d) result in positive valuation effects in Turkey's external wealth. (e) both (a) and (d) (f) both (b) and (c) 4 10. (3 points) In an open economy, if the long-run budget constraint is upheld (i.e. the country does not default on its debt), in order to keep consumption stable over time a nation will find it desirable to (a) run a trade deficit during negative temporary shocks and run a trade surplus during positive temporary shocks in income. (b) run a trade surplus during negative temporary shocks and run a trade deficit during positive temporary shocks in income. (c) save during temporary negative shocks and borrow during temporary positive income shocks. (d) forego borrowing to maintain financial stability, allowing consumption to fluctuate. (e) set changes in spending equal to changes in income every period