It Has Been Argued That the Exchange Rate Can Be

Multiple Choice

It has been argued that the exchange rate can be used as a policy tool. Assume that the U.S. government would like to reduce unemployment. Which of the following is an appropriate action given this scenario?

A) Weaken the dollar.
B) Strengthen the dollar.
C) Buy dollars with foreign currency in the foreign exchange market.
D) Implement a tight monetary policy.