Assume That There Is an Unexpected Increase in the Demand

Multiple Choice

Assume that there is an unexpected increase in the demand for U.S.dollars in Switzerland.If the foreign currency price of the U.S.dollar is fixed, the U.S.Federal Reserve must intervene in the foreign exchange market such that:

A) the supply of U.S.dollars increases.
B) the U.S.demand for the Swiss franc falls.
C) the supply of U.S.dollars decreases.
D) Swiss imports from the United States are reduced.
E) the Swiss currency is devalued.