Question

The market for exchanging dollars for Swiss francs for U.S. dollars is in equilibrium. The supply...

The market for exchanging dollars for Swiss francs for U.S. dollars is in equilibrium. The supply of francs rises, and the demand for francs falls. As a result, the exchange rate of dollars for francs will...

fall.

rise.

rise, then fall.

none of the above.

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Answer #1

Here we can see that the supply of Francs rises and the demand of Francs fall.

Francs as a currency is Losing its value or there is a depreciation of the currency with respect to US dollar

the dollar will appreciate and hence exchange rate of dollar for french francs will rise.

option B is right

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