Which of the following is an appropriate form of indirect intervention?
A) To strengthen the dollar, the Fed increases the money supply to lower interest rates.
B) To weaken the dollar, the Fed reduces the money supply to increase interest rates.
C) To strengthen the dollar in the long run, the Fed attempts to reduce U.S. inflation.
D) To weaken the dollar in the long run, the Fed attempts to reduce U.S. inflation.
Correct Answer:
Verified
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