Figure 11.2.Market for Francs
-Refer to Figure 11.2.A shift in the demand for francs from D₀ to D₂,or a shift in the supply of francs from S₀ to S₁,would result in a (an) :

Question

Figure 11.2.Market for Francs -Refer to Figure 11.2.A shift in the demand for francs from D₀ to D₂,or a shift in the supply of francs from S₀ to S₁,would result in a (an):

Quizplus · Accepted Answer

A shift in the demand curve for francs from D₀ to D₂ indicates an increase in demand for francs, while a shift in the supply of francs from S₀ to S₁ indicates a decrease in the supply of francs. Both of these will result in an appreciation of the franc and a depreciation of the dollar against the franc, making option B the correct answer.