To Force the Value of the Pound to Appreciate Against

question 87

Multiple Choice

To force the value of the pound to appreciate against the dollar, the Federal Reserve should:

• A) sell dollars for pounds in the foreign exchange market and the European Central Bank (ECB) should sell dollars for pounds in the foreign exchange market.
• B) sell pounds for dollars in the foreign exchange market and the European Central Bank (ECB) should sell dollars for pounds in the foreign exchange market.
• C) sell pounds for dollars in the foreign exchange market and the European Central Bank (ECB) should not intervene.
• D) sell dollars for pounds in the foreign exchange market and the European Central Bank (ECB) should sell pounds for dollars in the foreign exchange market.

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