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Let Denmark be the home country and Germany be the foreign country. Recall that the danish krone is fixed against the euro. Suppose that Germany

Let Denmark be the home country and Germany be the foreign country. Recall that the danish krone is fixed against the euro. Suppose that Germany experiences an increase in their real GDP. Assume everything else is constant.

Consider the FX market and the money market diagrams we learned within the asset approach to exchange rate determination.Assume that Danmarks Nationalbank is committed to protecting the peg.

State which schedules(s) shift in Denmark money market and explains why

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