21) If Home's currency depreciates versus Foreign's currency:         a

Question 21- When home currency depreciate versus foreign currency what will happen. When a country depreciate it's currency ,that increases the competition among home producers to sell their product .Due to huge level of competition the home-producers prefers to exports more at a high price in this time.So at the time.of depreciation exports is more than the import.

Another thing also happens at this time .At the time of depreciation the value of home currency decreases and simultaneously it increases the value of assets that is invested on foreign currency .

Now come to the options -

Option a- Home export become cheaper for foreign importer - This option is correct because due to depreciation a big competition arises between home producers .Home.producers sell their product at a low price to the importer to avoid competition.

Option b- Home export become more expensive to the importer -This option is wrong because at this time export become cheaper and importer found it at a lower price.

Option c - Repatriated ratings from.foreign assets - This option is absolutely correct because at the time of depreciation the value of foreign assets increases.

Option d - Both a and c - This option is absolutely correct .

So here for question 21 ans is option d

Question 22-Which of the following is an example of change in government fiscal policy -

Fiscal policy is the policy of the government that deals with public spendings and tax structure of the economy .

Now come to the options

Option a - Cut tax rate and cut government spending- This option is correct because both tax and spendings are the part of fiscal policy.Tax cutting comes under expansionary fiscal policy and spending cuts comes under contractionary fiscal policy .

Option b- Increases government spending and tax - This option is also correct because both of these are comes under fiscal policy.

Option c -Cuts in interest rate - This option is wrong because interest rate is related to monetary policy .It is not related with fiscal policy .

Option d - option a and b - This option is absolutely correct -

So for question 22 option d is correct .

Question 23- As a result of spending multiplier

Spending multiplier is the increases in the value of the income or output more than the initial investment. Simply , a spending multiplier is how much time the income gorws compare to base investment.

Now come to the options

Option a - An increased in the government spending results a multiple decreased in real GDP - This option is wrong because spending multiplier shows the multiple increse in real GDP due to spendings.

Option b- An increase in government spending leads to equal increse in real GDP - This option is also wrong because multiplier shows the multiple increase in the value of GDP due to increase in investment.

Option c- An increase in government spending leads to multiple increase in relation GDP - This option is absolutely correct because multiplier shows the multiple time increase in value of real GDP due to initial spendings.

Option d - An increse in government spending leads to no effect on real GDP - This option is also wrong because multiplier have a significant impact on related gdp.

So for question 23 option c is correct answer

Question 24 - To increse the aggregate demand what the government could

Aggregate demand only can be increses by cutting taxes and increasing government spending . Because when tax will be low people prefers to invest and consume more that will increases the aggregate demand . Simultaneously when government spending increases that will increses the income level of people . With a high income people perfers more to consume and that will shifts the aggregate demand level to upward .

Now come to the options -

Option a - Cut tax -This option is correct because tax cut will increase the income of people and that will shift the AD .

Option b- Increse in spending- This option is also correct because increse in spending always leads to high income and high income increases the AD on the other hand .

Option c- Increase in interest rate - This option is wrong because interest rate is related to monetary policy.

Option d - Both a and b - This option is absolutely correct .

So here for question 24 the answer is option d

Question 25- In a progressive tax system

A progress tax structure is a tax system where tax rate increases when taxable income increases.Here the average tax value is less than the marginal tax rate .

Now come to the options

Option a - All income group pay the same tax - This option is wrong because here the person having higher income will pay high amount of tax .

Option b - As income increases for the low income groups their marginal tax decreases - This option is also wrong because in progressive tax system when income increases more than certain level people will pay high level tax marginally . Low income group people or high income group people doesn't get any type.of discrimination here.

Option c- As income increases marginal tax increases - This option is absolutely correct because here a person having high level income will pay high level marginal tax compare to a person having lower income . The principal of vertical equity works here that is people having different income will be differently treated .

Option d - None of the above - This option is wrong

So here for question 25 answer is option c

For question

21- option d

22- option d

23-option c

24-option d

25 - option c

Is correct .