58. The United States and Britain are trading partners. Assume the Federal Reserve purchases bonds on the

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58. The United States and Britain are trading partners. Assume the Federal Reserve purchases bonds on the open market. What is the effect of this purchase on the nominal interest rate and on the value of the United States dollar relative to the British pound? Nominal Interest Rate U.S. Dollar Value (A) Increase Appreciate (B) Increase Depreciate (C) Decrease Appreciate (D) Decrease Depreciate (E) No change Appreciate

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