suppose the exchange rate is 90 yen per u.s. dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per u.s. dollar. if the demand for u.s. dollars , the fed ______.

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notgoodatmath9518 notgoodatmath9518

08-12-2022
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suppose the exchange rate is 90 yen per u.s. dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per u.s. dollar. if the demand for u.s. dollars , the fed ______.

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syadzayasmine syadzayasmine · Answer 1 · 2022-12-15T10:13:31+01:00

Suppose the exchange rate is 90 yen per u.s. dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per u.s. dollar. if the demand for u.s. dollars , the fed sells dollars to lower the exchange rate.

The currency market is offering fewer US dollars as the expected return from keeping US dollars rises. The currency will weaken if there are too many US dollars in circulation.

If the exchange rate is too low, the US dollar will become more expensive and difficult to come by. As the exchange rate increases, there is a decrease in demand for US dollars rates of interest in the US and abroad.

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suppose the exchange rate is 90 yen per u.s. dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per u.s. dollar. if the demand for u.s. dollars ​, the fed​ ______.

Respuesta :

Otras preguntas

suppose the exchange rate is 90 yen per u.s. dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per u.s. dollar. if the demand for u.s. dollars , the fed ______.