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If the Japanese Central Bank Performed a Sterilized Intervention to Reduce

Question 23

Multiple Choice

If the Japanese central bank performed a sterilized intervention to reduce the value of the yen, the most likely result is:


A) a lower value of the yen due to an increase in the monetary base in Japan.
B) a lower value of the yen due to a decrease in Japanese interest rates.
C) a higher value of the yen since the intervention was sterilized.
D) no change in the value of the yen since neither the monetary base nor Japanese interest rates would be affected.

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