The mechanism that normally coordinates what goes on in an economy is the

Suppose the Fed wants to fix the U.S. dollar/Mexican peso rate at 11 pesos per dollar under a fixed exchange rate policy. If the exchange rate falls to 10 pesos per dollar, the Fed can

A) buy dollars. B) sell dollars. C) attempt to freeze all sales of dollars. D) any of the above actions could take place.

When demand increases, the equilibrium price ________ and the equilibrium quantity ________

A) rises; decreases B) falls; decreases C) rises; increases D) falls; increases