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-Refer to Exhibit 35-4

Question 92

Multiple Choice

-Refer to Exhibit 35-4.Under a fixed exchange rate system,at the exchange rate of E₁,the peso is __________ and there is a __________.

A) overvalued; surplus of dollars
B) undervalued; shortage of pesos
C) overvalued; shortage of dollars
D) undervalued; surplus of pesos

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