The Equilibrium Exchange Rate of the Swiss Franc Is $0

question 12

Multiple Choice

The equilibrium exchange rate of the Swiss franc is $0.90. At an exchange rate $.83:

• A) U.S. demand for Swiss francs would exceed the supply of francs for sale and there would be a shortage of francs in the foreign exchange market.
• B) U.S. demand for Swiss francs would be less than the supply of francs for sale and there would be a shortage of francs in the foreign exchange market.
• C) U.S. demand for Swiss francs would exceed the supply of francs for sale and there would be a surplus of francs in the foreign exchange market.
• D) U.S. demand for Swiss francs would be less than the supply of francs for sale and there would be a surplus of Swiss francs in the foreign exchange market.

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Definitions:

Smoking Habit

The routine or compulsion of consuming tobacco products through the act of smoking, often leading to addiction.

Reinforcement

In psychology, it refers to any stimulus that strengthens or increases the probability of a specific response.

Negative Reinforcement

A process in behavior analysis where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Respondent Behavior

Behavior that occurs as an automatic response to a certain specific stimulus.