​ Figure 12.1 the Market for Francs

Multiple Choice

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Figure 12.1 The Market for Francs
-Refer to Figure 12.1.Should real interest rates in the United States rise relative to real interest rates in Switzerland, there would occur a(n)

A) increase in the demand for francs and a decrease in the supply of francs-depreciation of the dollar.
B) increase in the demand for francs and a decrease in the supply of francs-appreciation of the dollar.
C) decrease in the demand for francs and an increase in the supply of francs-appreciation of the dollar.
D) decrease in the demand for francs and a decrease in the supply of francs-depreciation of the dollar.