Exhibit 20-4 If Switzerland Were Trying to Peg Its

Exhibit 20-4 If Switzerland were trying to peg its exchange rate at A, in response to the shift in demand from D to D' shown in Exhibit 20-4, it would try to

A) shift the demand curve to the right to establish equilibrium at point x
B) shift the supply curve to the left to establish equilibrium at point x
C) shift the supply curve to the right to establish equilibrium at point z
D) support the new equilibrium at point y
E) move down along its supply curve to intersect the old demand curve at point x