Exhibit 18-3 -If Switzerland Were Trying to Peg Its Exchange Rate at Its

Exhibit 18-3

-If Switzerland were trying to peg its exchange rate at A,in response to the shift in demand from D to D' shown in Exhibit 18-3,it would try to

A) shift the demand curve to the right to establish equilibrium at point x
B) shift the supply curve to the left to establish equilibrium at point x
C) shift the supply curve to the right to establish equilibrium at point z
D) support the new equilibrium at point y
E) move down along its supply curve to intersect the old demand curve at point x