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 $.30 per franc.Free-market forces would lead to a (an) ____ of the dollar against the franc and a (an) ____ in U.S.international competitiveness:

Question

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 $.30 per franc.Free-market forces would lead to a (an) ____ of the dollar against the franc and a (an) ____ in U.S.international competitiveness:

Quizplus · Accepted Answer

If the exchange rate is $.30 per franc and free-market forces are at play, the dollar would depreciate against the franc, leading to an improvement in U.S. international competitiveness as U.S. goods become cheaper for foreign buyers.

Figure 111 Illustrates the Supply and Demand Schedules for the Swiss