Assume that the fixed exchange rate system of 1.1 euros = 1 ...

[sheilaspns]

Assume that the fixed exchange rate system of 1.1 euros = 1 dollar is below the equilibrium exchange rate of 1.3 euros = 1 dollar in a flexible exchange rate system. Then, at the fixed exchange rate, the dollar would be
 
  a. undervalued and the euro would be overvalued.
  b. overvalued and the euro would be undervalued.
  c. revalued and the euro would be devalued.
  d. depreciated and the euro would be appreciated.

Question 2

In the classical and monetarist aggregate demand curves:
 
  a. money is the primary factor driving changes in aggregate demand.
  b. taxes can never shift aggregate demand.
  c. government spending can never shift aggregate demand.
  d. changes in aggregate demand drive most recessions.
  e. both a and d.

[chloejackso]

Answer to Question 1

A

Answer to Question 2

A

[sheilaspns]

Thanks for the timely response, appreciate it

[chereeb]

YES! Correct, THANKS for helping me on my review