Multiple Choice
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.If Switzerland experienced a disastrous wheat-crop failure,leading to additional wheat imports from the United States,there would occur an:
A) Increase in the supply of francs and an appreciation of the dollar
B) Increase in the supply of francs and a depreciation of the dollar
C) Increase in the demand for francs and a depreciation of the dollar
D) Increase in the demand for francs and an appreciation of the dollar
Correct Answer:

Verified
Correct Answer:
Verified
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