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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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