Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's tax level rises relative to England and nothing else changes, then the:
a. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc.
b. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc.
c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc.
d. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc.
e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
.B
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An investor in an index fund earning 12.3% per year would see an investment of $10,000 increase to approximately ____ in 25 years
a. $11,000 b. $48,000 c. $54,000 d. $170,000
For a consumer to maximize utility, he will choose the
a. point where the slope of the budget line equals the slope of the indifference curve. b. any point where the budget line and indifference curve intersect. c. point where he gets the most of the good he prefers most. d. point where the marginal rate of substitution is greatest. e. the point where marginal utility is zero for both goods