Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, Point E necessarily represents

A federal budget ________ occurs when the government spends less than it collects in taxes

A) floor B) surplus C) equilibrium D) deficit

A currency pegged at a value below the market equilibrium exchange rate is

A) achieving purchasing power parity. B) undervalued. C) overvalued. D) None of the above are correct.