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If the USDollar Depreciates Against the Yen Below the Targeted Exchange Rate

Question 7

Multiple Choice

If the U.S.dollar depreciates against the yen below the targeted exchange rate, the U.S.Federal Reserve has to intervene in the foreign exchange market such that:


A) the U.S.demand for yen rises.
B) the supply of U.S.dollars rises.
C) U.S.exports to Japan fall.
D) the U.S.dollar is devalued.
E) the supply of U.S.dollars falls.

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