The figure below illustrates the supply and demand schedules of Swiss francs in a market of freely-floating exchange rates.
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 (an):

Question

The figure below illustrates the supply and demand schedules of Swiss francs in a market of freely-floating exchange rates.
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 (an):

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 demand for francs and increasing supply of francs, leading to dollar appreciation.

The Figure Below Illustrates the Supply and Demand Schedules of Swiss