If the USDollar Depreciates Relative to the Swiss Franc, Then

question 136

Multiple Choice

If the U.S.dollar depreciates relative to the Swiss franc, then

• A)Swiss goods become more expensive in the U.S.
• B)U.S.goods become more expensive in Switzerland
• C)Swiss investors will pay more Swiss francs to buy each U.S.dollar
• D)the U.S.will import more from Switzerland
• E)the U.S.dollar-Swiss franc exchange rate will decrease

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Definitions:

Production Possibilities

A curve or frontier that illustrates the maximum feasible amounts of two commodities that can be produced with available resources and technology.

Competitive Equilibrium

A state in a market where supply equals demand, and no economic agent has the incentive to change their behavior, leading to an efficient allocation of resources.

Consumption Bundles

A combination of various goods and services that an individual consumes to derive satisfaction or utility.

Income

The amount of money received over a period of time, typically as payment for work, goods, or investments.