Under a fixed exchange rate system, if the dollar price of a Mexican peso is below its equilibrium level, the peso is said to be

The ________ due to a countercyclical policy during a recession is ________ when wages are downwardly rigid than when wages are flexible

A) increase in employment; lower B) increase in interest rates; lower C) increase in employment; higher D) increase in taxes; higher

In the above figure, if the real interest rate is 4 percent, then there

A) there is a surplus of loanable funds. B) is equilibrium in the loanable funds market. C) the real interest rate will rise. D) the demand curve for loanable funds will shift rightward.