If the British price level rose relative to the Swiss price level,there would be
A) a rightward movement along the supply of Swiss francs curve in the pound-franc market
B) a leftward movement along the supply of Swiss francs curve in the pound-franc market
C) an increased supply of Swiss francs to the pound-franc market
D) a decreased supply of Swiss francs to the pound-franc market
E) no change of the supply of Swiss francs curve in the pound-franc market

Question

Quizplus · Accepted Answer

If the British price level rose relative to the Swiss price level, the pound would depreciate against the Swiss franc. This would make Swiss francs more expensive in terms of pounds, reducing the quantity supplied of Swiss francs to the pound-franc market.

If the British Price Level Rose Relative to the Swiss