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If the U.S. dollar depreciates against the yen below the targeted exchange rate, the U.S. Federal Reserve has to intervene in the foreign exchange market
If the U.S. dollar depreciates against the yen below the targeted exchange rate, the U.S. Federal Reserve has to intervene in the foreign exchange market such that:
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the U.S. demand for yen rises.
the U.S. dollar is devalued.
U.S. exports to Japan fall.
the supply of U.S. dollars rises.
the supply of U.S. dollars falls.
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