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The Figure Below Illustrates the Supply and Demand Schedules of Swiss

Question 125

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The figure below illustrates the supply and demand schedules of Swiss francs in a market of freely-floating exchange rates.
Figure 12.1 The Market for Francs
The figure below illustrates the supply and demand schedules of Swiss francs in a market of freely-floating exchange rates. 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 (an) : A)  Increase in the demand for francs--decrease in the supply of francs-depreciation of the dollar B)  Increase in the demand for francs--decrease in the supply of francs-appreciation of the dollar C)  Decrease in the demand for francs--increase in the supply of francs-appreciation of the dollar D)  Decrease in the demand for francs--decrease in the supply of francs-depreciation of the dollar
-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 (an) :


A) Increase in the demand for francs--decrease in the supply of francs-depreciation of the dollar
B) Increase in the demand for francs--decrease in the supply of francs-appreciation of the dollar
C) Decrease in the demand for francs--increase in the supply of francs-appreciation of the dollar
D) Decrease in the demand for francs--decrease in the supply of francs-depreciation of the dollar

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