Answer Happy

Q3 - Exchange Rate Determination The figure below illustrates the supply and demand schedules of Swiss franc in a market of freely floating exchange rates. Should the US price level rise relative to the Swiss price level, there would occur a(n) Dol per Franc a. increase in the demand for francs and an increase in the supply of francs - appreciation of the dollar. b. decrease in the demand for francs and a decrease in the supply of francs - depreciation of the dollar. c. increase in the supply of francs and a decrease in the demand for francs - appreciation of the dollar. 0.20 d. decrease in the supply of francs and an increase in the demand for francs - depreciation of the dollar. A Qway of Freek