An increase in Swiss interest rates will cause
A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
C
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Government debt and interest payments on that debt
a. are problems if they grow faster than GDP b. are unrelated in the short run c. are unrelated in the long run, but not in the short run d. generally grow faster than government spending e. contributed to the crisis experienced by the U.S. economy in the late 1990s
A profit-seeking firm will choose the combination of inputs that maximizes profit, based on the:
A. ratio of each factor of production. B. substitutability of each factor of production. C. local price of each factor of production. D. total productivity of each factor of production.