Question attached in the photo

b. Consider a fixed exchange rate system, in which a group of countries (called follower countries) peg their currencies to the currency of one country (called the leader country). Because the currency of the leader country is not fixed against the currencies of countries outside the fixed exchange rate system, the leader country can conduct monetary policy as it wishes. For this problem, consider the domestic country to be a follower country and the foreign country to be the leader country. How does a decrease in interest rates in the leader country affect the interest rate and output in the follower country? (Assume the follower country does not change fiscal policy). Can the follower country use fiscal policy to offset the effects of the leader country's reduction in interest rates and leave domestic output unchanged? When might such a fiscal policy be undesirable