A decrease in Swiss prices 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.
Question 2
In the foreign exchange market, the
A) supply of dollars decreases as the exchange rate increases and the quantity of dollars supplied does not change.
B) quantity of dollars supplied increases as the exchange rate decreases and the supply of dollars does not change.
C) quantity of dollars supplied increases as the exchange rate increases and the supply of dollars does not change.
D) supply of dollars increases as the exchange rate increases and the quantity of dollars supplied does not change.
E) both the quantity of dollars supplied and the supply of dollars increases as the exchange rate increases.
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