Figure 11.1 illustrates the supply and demand schedules for the Swiss franc.Assume that exchange rates are flexible.
Figure 11.1.Supply and Demand Schedules of Francs
-Refer to Figure 11.1.Suppose the exchange rate is $.70 per franc.At this exchange rate there is an ____ of francs which leads to a ____ in the dollar price of the franc,a (an) ____ in the quantity of francs supplied,and a (an) ____ in the quantity of francs demanded.
A) Excess demand,rise,increase,decrease
B) Excess demand,rise,decrease,increase
C) Excess supply,fall,decrease,increase
D) Excess supply,fall,increase,decrease
Correct Answer:
Verified
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