Question 8 2.5 pts Figure 13.2 Interest rate LM i-F BP . IS IS, Y Y, Income (Y) Refer to Figure 13.2. A country has raised taxes causing the IS curve to shift in. In a fixed exchange rate regime, the country is experiencing an external disequilibrium at point B, then to peg the exchange rate the central bank has to: buy domestic currency, sell foreign currency, and shift the Is to the left buy foreign currency, sell domestic currency, and shift the LM to the right buy domestic currency, sell foreign currency, and shift the LM to the left O buy foreign currency, sell domestic currency, and shift the IS to the right Question 8 2.5 pts Figure 13.2 Interest rate LM i-F BP . IS IS, Y Y, Income (Y) Refer to Figure 13.2. A country has raised taxes causing the IS curve to shift in. In a fixed exchange rate regime, the country is experiencing an external disequilibrium at point B, then to peg the exchange rate the central bank has to: buy domestic currency, sell foreign currency, and shift the Is to the left buy foreign currency, sell domestic currency, and shift the LM to the right buy domestic currency, sell foreign currency, and shift the LM to the left O buy foreign currency, sell domestic currency, and shift the IS to the right