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Refer to Figure 36

Question 67

Multiple Choice

Refer to Figure 36.3 for the dollar-Swiss franc foreign exchange market.Which of the following is true? A) The U.S.dollar appreciates in value compared to the franc when supply increases from S<sub>1</sub> to S<sub>2.</sub> B) The Swiss franc appreciates in value compared to the U.S.dollar when supply decreases from S<sub>2</sub> to S<sub>1.</sub> C) An increase in supply from S<sub>1</sub> to S<sub>2</sub> could be caused by an increase in the U.S.demand for Swiss chocolate. D) An increase in supply from S<sub>1</sub> to S<sub>2</sub> could be caused by an increase in Swiss demand for U.S.corn. Refer to Figure 36.3 for the dollar-Swiss franc foreign exchange market.Which of the following is true?


A) The U.S.dollar appreciates in value compared to the franc when supply increases from S1 to S2.
B) The Swiss franc appreciates in value compared to the U.S.dollar when supply decreases from S2 to S1.
C) An increase in supply from S1 to S2 could be caused by an increase in the U.S.demand for Swiss chocolate.
D) An increase in supply from S1 to S2 could be caused by an increase in Swiss demand for U.S.corn.

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