If the target exchange rate is 100 yen per dollar and the current exchange rate is 90 yen per dollar, the Fed will

Name: If the target exchange rate is 100 yen per dollar and the current exchange rate is 90 yen per dollar, the Fed will
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Question

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To increase the exchange rate from 90 yen per dollar to the target of 100 yen per dollar, the Fed would buy dollars, reducing the supply of dollars in the market, which would increase the demand for dollars and raise the exchange rate.

If the Target Exchange Rate Is 100 Yen Per Dollar