If the Federal Reserve Intervenes in the Foreign-Exchange Markets by Selling

question 44

Multiple Choice

If the Federal Reserve intervenes in the foreign-exchange markets by selling foreign currencies

• A)the U.S.money supply rises and foreign currencies depreciate.
• B)the U.S.money supply falls and foreign currencies depreciate.
• C)the U.S.money supply rises and foreign currencies appreciate.
• D)the U.S.money supply falls and foreign currencies appreciate.

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