Refer to Figure 36

question 10

Multiple Choice

Refer to Figure 36.3 for the dollar-Swiss franc foreign exchange market.Which of the following is true?

• A)The U.S.dollar appreciates in value compared to the franc when supply increases from S₁ to S_2.
• B)The Swiss franc appreciates in value compared to the U.S.dollar when supply decreases from S₂ to S_1.
• C)An increase in supply from S₁ to S₂ could be caused by an increase in the U.S.demand for Swiss chocolate.
• D)An increase in supply from S₁ to S₂ could be caused by an increase in Swiss demand for U.S.corn.

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