8. Suppose again that the CB sets I? = 4-. 5. Then: to maintain the exchange rate at E the CB will have to : (Hint: compare 3 with the equilibrium exchange rate you found in question 2.] A) absorb the foreign exchange paid by traders and pay them with domestic currency so that the C B*s foreign exchange reserves rise but the domestic money supply decreases. B) absorb the foreign exchange paid by traders and pay them with domestic currency so that the CB's foreign exchange reserves rise and the domestic money supply increases. C) pay traders out of foreign exchange reserves. and absorb the domestic currency. so that the CB's foreign exchange reserves fall and the domestic money supply hi falls. D) pay traders out of foreign exchange reserves. and absorb the domestic currency. so that the CB's foreign exchange reserves fall and the domestic money supply M rises