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

Question

Quizplus · Accepted Answer

If the Swiss price level fell relative to the British price level, British goods would become relatively cheaper than Swiss goods. This would lead to an increase in the demand for British pounds, which would cause the supply curve of British pounds to shift to the right.

If the Swiss Price Level Fell Relative to the British