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 rises, causing an uncertain change in the value of the Swiss franc.
b. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc.
c. 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.
d. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
e. 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.
.E
You might also like to view...
Keeping $20 in currency to be able to buy gasoline, money is performing which function?
A) medium of exchange B) unit of account C) store of value D) barter mechanism E) symbol of fiat
Suppose we coupled the pay of Congress with the federal budget, so that for every billion dollars of deficit spending, a lawmaker's pay would be reduced $1,000 . How would this affect fiscal policy?
A public teacher's pension is likely to be
A. whatever they saved for themselves because they are not eligible for a pension or for Social Security. B. Social Security only. C. defined contribution. D. defined benefit.
Adam Smith
A) is responsible for refining the model of supply and demand. B) is the author of this text. C) is considered the founder of economics. D) introduced the concept of ceteris paribus to the discussion of supply and demand.