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If Sabrina Exchanges Dollars for Japanese Yen, She

Question 49

Multiple Choice

If Sabrina exchanges dollars for Japanese yen, she


A) causes the balance of payments to become unbalanced, in the short run
B) engages in arbitrage
C) supplies yen on the foreign exchange market
D) supplies dollars on the foreign exchange market
E) first demands dollars then uses them to buy Japanese goods which can be converted into yen

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