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The Danish krone is currently pegged to the Euro. Using the IS - LM - FX model for Home ( Denmark ) and Foreign (

The Danish krone is currently pegged to the Euro. Using the IS-LM-FX model for Home (Denmark) and Foreign (Eurozone), illustrate how each of the following scenarios affects Denmark

11.1. The Eurozone reduces its money supply.

11.2. Denmark cuts government spending to reduce its budget deficit

11.3. The Eurozone countries increase their taxes

Can you please explain it with the IS LM FX graphs ?(Sketch them please)

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