The Currency Used in the Duchy of Saxony Is the Ducet.The

The currency used in the Duchy of Saxony is the ducet.The demand for Saxonian ducets in the foreign exchange market equals 8,000 - 2,000e and the supply of ducets in the foreign exchange market equals 4,500 + 3,000e,where e is the nominal exchange rate expressed in dollars per ducet.If the ducet is fixed at $0.90 per ducet,then the ducet is __________ and the Duchy of Saxony has a balance-of-payments ___________.

A) overvalued;surplus of 1,250 ducets
B) overvalued;deficit of 1,000 ducets
C) overvalued;deficit of $1,250
D) undervalued;surplus of 1,250 ducets
E) undervalued;deficit of 1,250 ducets