To offset an appreciation of the dollar, the Federal Reserve can buy dollars in the foreign exchange market.

Name: To offset an appreciation of the dollar, the Federal Reserve can buy dollars in the foreign exchange market.
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Question

Quizplus · Accepted Answer

To offset an appreciation of the dollar, the Federal Reserve would sell dollars in the foreign exchange market to increase the supply of dollars, thereby decreasing its value relative to other currencies.

To Offset an Appreciation of the Dollar, the Federal Reserve