If the interest rate on Swiss franc assets increases, the
A) demand for dollars will decrease.
B) demand for dollars will increase.
C) quantity of dollars demanded will decrease.
D) quantity of dollars demanded will increase.

Question

Quizplus · Accepted Answer

When the interest rate on Swiss franc assets increases, investors are more likely to invest in Swiss franc assets rather than dollar assets, leading to a decrease in the demand for dollars.

If the Interest Rate on Swiss Franc Assets Increases, the