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Assume that the Japanese Central Bank intervenes in the foreign exchange market in an attempt to reduce the value of the yen. What action must

Assume that the Japanese Central Bank intervenes in the foreign exchange market in an attempt to reduce the value of the yen. What action must it take simultaneously in the domestic market in order to sterilize the forex market intervention?

a. Buy domestic bonds

b. Sell domestic bonds

c. Sell its gold reserves to buy U.S. dollars

d. None of the above

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