Figure 11.2. Market for Francs

-Refer to Figure 11.2.A shift in the demand for francs from D? to D? or a shift in the supply of francs from S? to S?,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 D? to D? or a shift in the supply of francs from S? to S?,would result in a (an):

Quizplus · Accepted Answer

A shift in the demand for francs from D? to D? or a shift in the supply of francs from S? to S? would result in a change in the exchange rate between the dollar and the franc. Specifically, if there is an increase in the demand for francs or a decrease in the supply of francs, it would lead to an appreciation of the franc and a depreciation of the dollar against the franc. Therefore, the best choice is A.