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

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If the dollar price of Mexican pesos is below its equilibrium level, it means that the demand for pesos is low, and the supply is high. This causes the value of the peso to be undervalued, as it is not in line with its true value. It does not necessarily imply that the dollar is undervalued or has depreciated.

If,under a Fixed Exchange Rate System,the Dollar Price of Mexican