The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy was at point A, a triple intersection. Here, the FE curve is flatter than the LM curve. 
In order to maintain the fixed exchange rate, at point B monetary authorities must:
Definitions:
Best Accommodate
To make the necessary adjustments or modifications to optimally serve or meet the needs of someone or something.
Carpeting
Floor covering made of thick woven fabric or synthetic fibers, used for its acoustic and comfort properties.
120 Square Foot
A measurement of area equivalent to a space that is 120 square feet in size, often used to describe the size of a small room.
Square Feet
A unit of area measurement equivalent to a square measuring one foot on each side.
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