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Exhibit 18-4 -Suppose the Swiss Government Wants to Set the Exchange Rate

Question 109

Multiple Choice

Exhibit 18-4 Exhibit 18-4 -Suppose the Swiss government wants to set the exchange rate at A in Exhibit 18-4.The appropriate action for the government to take after the demand shift shown is A) to reduce its demand for dollars from Canada B) to reduce its supply of francs to Canada C) to increase its supply of francs to Canada D) to raise the price of foreign exchange in Canada E) to increase the U.S.demand for goods and services from Switzerland
-Suppose the Swiss government wants to set the exchange rate at A in Exhibit 18-4.The appropriate action for the government to take after the demand shift shown is


A) to reduce its demand for dollars from Canada
B) to reduce its supply of francs to Canada
C) to increase its supply of francs to Canada
D) to raise the price of foreign exchange in Canada
E) to increase the U.S.demand for goods and services from Switzerland

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