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If the US Federal Reserve Were to Purchase Yen Using Dollars, What

Question 67

Multiple Choice

If the U.S. Federal Reserve were to purchase yen using dollars, what would be the result?


A) The dollar would not change in value against the yen.
B) The dollar would appreciate against the yen.
C) The supply of dollars to Japan would decrease.
D) The supply of dollars to Japan would increase.

Correct Answer:

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