The Figure Below Illustrates the Supply and Demand Schedules of Swiss

question 35

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 the U.S.price level rise relative to the Swiss price level,there would occur a (an) :

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

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