Denmark is a small open economy with a fixed exchange rate against the euro. Using the IS-LM model for an open economy with a fixed exchange rate, analyze the short-term effects in Denmark of the ECB increasing the euro interest rate, ie i* increasing. Assume that Danish fiscal policy does not change. (Tip: During a fixed exchange rate, the Danish central bank must change its policy so that the exchange rate does not change. How must the Danish domestic interest rate then change and what must therefore happen with the LM curve?). Show your results in the IS-LM figure and explain briefly in words what happens to GDP in Denmark.