The Figure Below Illustrates the Supply and Demand Schedules of Swiss

question 94

Multiple Choice

The figure below illustrates the supply and demand schedules of Swiss francs in a market of freely-floating exchange rates.
Figure 12.1 The Market for Francs

-Refer to Figure 12.1.Should preferences for imports rise in the United States and fall in Switzerland,there would occur a (an) :

• A) Increase in the demand for francs--decrease in the supply of francs-depreciation of the dollar
• B) Increase in the demand for francs--decrease in the supply of francs-appreciation of the dollar
• C) Decrease in the demand for francs--decrease in the supply of francs-appreciation of the dollar
• D) Decrease in the demand for francs--increase in the supply of francs-depreciation of the dollar

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Definitions:

Little Importance

A term used to denote items, issues, or topics that are considered to have minimal significance or priority.

Avoidance

A strategy or behavior aimed at steering clear of certain situations, conflicts, or responsibilities due to perceived potential negative outcomes.

Switching Departments

The process of an employee moving from one department to another within the same organization to assume a different role or responsibility.

Trust

The confidence in the reliability, truth, ability, or strength of someone or something.