Figure 12.1 The Market for Francs
-Refer to Figure 12.1.Should real interest rates in the United States rise relative to real interest rates in Switzerland, there would occur a(n)

Question

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Figure 12.1 The Market for Francs 
-Refer to Figure 12.1.Should real interest rates in the United States rise relative to real interest rates in Switzerland, there would occur a(n)

Quizplus · Accepted Answer

If real interest rates in the U.S. rise relative to Switzerland, capital would flow into the U.S. seeking higher returns, decreasing the demand for francs and increasing the supply of francs, leading to an appreciation of the dollar.

​ Figure 12.1 the Market for Francs

Figure 12.1 the Market for Francs