2. Identify in the following cases whether the country is utilizing Sterilized or Non- sterilized intervention, the impact on the dollar (weaken or strengthen), and the likely impact on the U.S. economy in terms of inflation. Intervention Non- Sterilized Dollar Affect Weaken Inflation Affect Inflation increase Example The Fed purchases Euros by selling dollars through FOREX The Fed sells Yuan and purchases dollars through FOREX. At the same time they buy U.S. treasuries. The Fed purchases Mexican Pesos by selling dollars through FOREX. At the same time they increase the Reserve Requirement. The Fed buys Yen by selling dollars through FOREX The FED buys Pounds Sterling by selling dollars through FOREX. At the same time the Fed sells U.S. treasuries