If, under a fixed exchange rate system, the dollar price of a Mexican peso is above its equilibrium level, then the

If a farmer produces 1000 bushels of corn using ten acres of land and one tractor and is able to produce 2000 bushels of corn using twenty acres of land and one tractor, the farmer has

A) increasing returns to scale. B) constant returns to scale. C) decreasing returns to scale. D) no returns to scale.

In the aggregate demand-aggregate supply model, an increase in the price level will

a. increase money demand, raise the interest rate, reduce aggregate expenditure, and decrease equilibrium real GDP b. decrease money demand, lower the interest rate, increase aggregate expenditure, and increase real GDP c. increase the money supply, lower the interest rate, increase aggregate expenditure, and increase real GDP d. decrease the money supply, raise the interest rate, reduce aggregate expenditure, and decrease real GDP e. not change money supply, money demand or the interest rate, but will shift the aggregate demand curve to the right