You Note That Over the Last Five Years, the Swiss

question 20

Essay

You note that over the last five years, the Swiss franc has appreciated from Sfr 1.60/$1 to Sfr 1.45/$1. During that same period, the U.S. consumer price index rose from 100 to 120 and the Swiss consumer price index rose from 100 to 105. On the basis of these movements, would you expect the Swiss to be buying more or less U.S. goods? Why? Would you advise a foreign exchange speculator to buy Swiss francs at this point or to change Swiss francs into U.S. dollars? Why or why not?

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Definitions:

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally for its euphoric effects but can lead to addiction and severe health issues.

Amphetamines

A class of stimulant drugs that are used both medically for conditions like ADHD and recreationally, which can lead to addiction.

Alcoholics Anonymous (AA)

An organization created by and for people with alcoholism involving a 12-step treatment program.

Abstain Completely

To deliberately choose not to use or do something, especially substances like alcohol or drugs.