Figure 12.1 The Market for Francs
-Refer to Figure 12.1.Should preferences for imports rise in the United States and fall in Switzerland, there would occur a(n)

Question

​
Figure 12.1 The Market for Francs 
-Refer to Figure 12.1.Should preferences for imports rise in the United States and fall in Switzerland, there would occur a(n)

Quizplus · Accepted Answer

If preferences for imports rise in the United States and fall in Switzerland, then the demand for Swiss francs will increase as US consumers will have to purchase more francs to buy Swiss goods. At the same time, Swiss consumers will have less desire to purchase US goods, leading to a decrease in the supply of francs. This will result in the depreciation of the dollar.

​ Figure 12.1 the Market for Francs

Figure 12.1 the Market for Francs