Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 10 Chinese yuan, but it finds that the value of yuan is depreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A) Increase government spending within the U.S.
B) Buy U.S. dollars.
C) Sell U.S. dollars.
D) Increase the money supply in the U.S.
Correct Answer:
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