QUESTION 7 All else being equal, an increase in a country's inflation rate will tend to increase the demand for that country's currency in the foreign exchange market. true false QUESTION 8 Switzerland's national income (GDP) is growing dramatically compared to its trading partners, which will have an impact on Switzerland's balance of trade. Which of the following actions could the Swiss government use to counteract the effect that its growing GDP has on its balance of trade? Swiss government increases quotas on imports. Swiss government decrease tariffs on imports. Swiss government increases the supply of Swiss francs in the foreign exchange market. Swiss government sells a portion of its gold reserves in exchange for Swiss francs