Assume the U

Multiple Choice

Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 120 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?

A) Buy more Japanese goods.
B) Buy U.S. dollars.
C) Sell U.S. dollars.
D) Encourage U.S. investments abroad.