The supply of francs,would shift to the right for all of the following reasons except:
A) An increase in Swiss real income
B) An increase in Swiss prices
C) An increase in the Swiss population
D) An increase in Swiss interest rates

Question

Quizplus · Accepted Answer

An increase in Swiss interest rates would lead to a decrease in the supply of francs, as higher interest rates would make holding francs more attractive and decrease the incentive to supply them. An increase in Swiss real income, prices, and population would all lead to an increase in the supply of francs, as more people would be willing and able to supply them.

The Supply of Francs,would Shift to the Right for All