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-In the Above Figure, Suppose the Demand for Dollars Permanently

Question 331

Multiple Choice

-In the above figure, suppose the demand for dollars permanently decreases to D?. To maintain the target, the Fed A) can buy dollars. B) can sell dollars. C) must decrease the nation's net exports. D) cannot permanently maintain the exchange rate target of 150 yen per dollar.
-In the above figure, suppose the demand for dollars permanently decreases to D?. To maintain the target, the Fed


A) can buy dollars.
B) can sell dollars.
C) must decrease the nation's net exports.
D) cannot permanently maintain the exchange rate target of 150 yen per dollar.

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