Juanita quit her job to move to Santa Fe to be closer to her family. She is actively looking for a new job in Santa Fe. Juanita is considered:

What happens to the monetary base if the domestic currency is undervalued (the central bank fixed the exchange rate below equilibrium) and the central bank intervenes to fix the exchange rate at its current level?

a. The change in the monetary base is ambiguous. b. The monetary base is only affected by interventions of the central bank when the domestic currency is overvalued. c. The monetary base will rise. d. The monetary base is never affected by interventions of the central bank. e. The monetary base will fall.

Which of the following would result if the price level were below the equilibrium level?

A. Aggregate supply would decrease. B. Aggregate demand would increase. C. Shortages would force sellers to lower prices in order to increase aggregate quantity demanded. D. Consumers would bid prices up by competing for goods currently in shortage.