Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 100 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A. Buy U.S. dollars.
B. Sell U.S. dollars.
C. Encourage U.S. investments abroad.
D. Buy more Japanese goods.
Answer: A
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