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

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If the dollar price of a Mexican peso is below its equilibrium level, it means that the dollar is overvalued. This is because the exchange rate is fixed, and if the dollar price of the peso is too low, it means that the demand for pesos is too low relative to the supply of dollars, indicating that the market is undervaluing the peso compared to its true value. Therefore, the dollar is overvalued in this situation.

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