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    International Financial Management Study Set 1
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    Exam 6: Government Influence on Exchange Rates
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    If the Fed Decides to Weaken the Dollar Utilizing Unsterilized
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If the Fed Decides to Weaken the Dollar Utilizing Unsterilized

Question 21

Question 21

True/False

If the Fed decides to weaken the dollar utilizing unsterilized intervention, it should be aware that this action may backfire because it will increase money supply and thus increase inflation.

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