The Fed exchanges $1 million for 139 million yen. If the Fed sells $1 million worth of

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The Fed exchanges $1 million for 139 million yen. If the Fed sells $1 million worth of T-bills in the open market, what will happen to domestic interest rates and the money supply? If the Fed does not do the open market sale, what will happen to domestic interest rates and the money supply? In which case is the foreign exchange transaction sterilized? Appendix

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