Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to...

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Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to keep the exchange rate at a target rate of 90 yen per U.S. dollar. If the demand for U.S. dollars increases, the Fed A. sells dollars to lower the exchange rate B. sells dollars to raise the exchange rate C. buys dollars to raise the exchange rate D. buys dollars to lower the exchange rate Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to keep the exchange rate at a target rate of 90 yen per U.S. dollar. If the demand for U.S. dollars increases, the Fed A. sells dollars to lower the exchange rate B. sells dollars to raise the exchange rate C. buys dollars to raise the exchange rate D. buys dollars to lower the exchange rate

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