Given Floating Exchange Rates,assume That the Swiss Decrease Their Import

question 199

Multiple Choice

Given floating exchange rates,assume that the Swiss decrease their import purchases from Italy while at the same time the Italians increase their purchases of Swiss government securities.The first action by itself would lead to a (an) ____ of the franc against the lira while the second action by itself would lead to a (an) ____ of the franc against the lira.

• A) Appreciation,appreciation
• B) Depreciation,depreciation
• C) Appreciation,depreciation
• D) Depreciation,appreciation

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A feeling of disappointment resulting from the discovery that something is not as good as one believed it to be.

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The period before an event occurs, marked by preparations and expectations about future developments.