The figure below illustrates the supply and demand schedules of Swiss francs under a system of floating exchange rates.
Figure 12.2.The Market for Swiss Francs

-Refer to Figure 12.2.If the United States decreases tariffs on imports from Switzerland,there would occur a decrease in the demand for francs and a decrease in the dollar price of the franc.

Question

The figure below illustrates the supply and demand schedules of Swiss francs under a system of floating exchange rates.
Figure 12.2.The Market for Swiss Francs
 
-Refer to Figure 12.2.If the United States decreases tariffs on imports from Switzerland,there would occur a decrease in the demand for francs and a decrease in the dollar price of the franc.

Quizplus · Accepted Answer

A decrease in tariffs on imports from Switzerland would likely increase the demand for Swiss goods, leading to an increase in the demand for francs and potentially increasing the dollar price of the franc.

The Figure Below Illustrates the Supply and Demand Schedules of Swiss