Suppose the Target Exchange Rate Set by the Reserve Bank

Suppose the target exchange rate set by the Reserve Bank is 150 yen per dollar. If the demand for dollars permanently decreases, the Reserve Bank

A) cannot permanently maintain the target rate.
B) must violate both interest rate parity and purchasing power parity to permanently meet the target.
C) can permanently meet the target by selling dollars.
D) can permanently meet the target by buying dollars.