Boversia has a fixed exchange rate against the dollar. Taxes rise in the United States, reducing U.S.

Question:

Boversia has a fixed against the dollar. Taxes rise in the United States, reducing U.S. aggregate expenditure. The Federal Reserve adjusts the U.S. interest rate to keep output constant, and Boversia’s central bank adjusts its interest rate to keep the constant. Using graphs, show what happens to Bover¬sia’s output, interest rate, and Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...