In the foreign exchange market for the Swiss franc, why does the supply curve for francs have an upward slope as the dollar price of the franc increases?

Show Answers

U.S. consumers increase their purchases of Swiss goodsU.S. consumers reduce their purchases of Swiss goodsSwiss consumers increase their purchases of American goodsSwiss consumers reduce their purchases of American goods

Explanation

The supply of Swiss francs rises because when the dollar price of the franc goes up, American buyers demand more Swiss products, leading to a higher supply of francs in the market.