Given the foreign currency market for the Swiss franc, the supply of francs slopes upward, because as the dollar price of the franc rises
A) America's demand for Swiss merchandise rises.
B) America's demand for Swiss merchandise falls.
C) Switzerland's demand for American merchandise rises.
D) Switzerland's demand for American merchandise falls.

Question

Quizplus · Accepted Answer

As the dollar price of the franc rises, Swiss goods become more expensive for Americans, leading to a decrease in demand for Swiss goods. Conversely, American goods become cheaper for the Swiss, increasing Switzerland's demand for American merchandise, which increases the supply of francs as Swiss entities exchange francs for dollars to purchase American goods.

Given the Foreign Currency Market for the Swiss Franc, the Supply