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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

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 affect Denmark:The Eurozone reduces its money supply

Y increases

Y decreases

Y has no change

E increases

E decreases

E has no change

i increases

i decreases

i has no change

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