To force the value of the dollar to appreciate against the pound, the Federal Reserve should:
A) sell pounds for dollars in the foreign exchange market and the Bank of England should sell pounds for dollars in the foreign exchange market.
B) sell dollars for pounds in the foreign exchange market and the Bank of England should sell pounds for dollars in the foreign exchange market.
C) sell dollars for pounds in the foreign exchange market and the Bank of England should not intervene.
D) sell dollars for pounds in the foreign exchange market and the Bank of England should sell dollars for pounds in the foreign exchange market.
Correct Answer:
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