IT Doubts

[Homer Simpson]

A country with a high imports to GDP ratio must be more open than a country with a low exports to GDP ratio.
a) True
b) False
c) Uncertain

The only way a country can eliminate an equilibrium trade surplus is through a painful appreciation of their currency, which reduces equilibrium income.
a) True
b) False
c) Uncertain
 
Budget deficits always cause trade deficits.
a) True
b) False
c) Uncertain

Please explain your reasoning. Thank you!

[Homer Simpson]

Exchange rates are fixed. If domestic inflation is higher than foreign inflation, then net exports will fall.
a) True
b) False
c) Uncertain

Imagine an economy described by these behavioral equations and parameters:

Ct = 120 + 0.4(Yt - T)
I = 40 - 54it
G = 20
T = 45
Yt+1 = Ct+ It + G
(M/P)α = Y/i + 6.1
θ = 1/8,P = 1,W = 5

Write down the expression for the IS curve by analyzing the equilibrium in the market for goods.