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3. Japan is concerned that its currency, the yen, is appreciating too much relative to the U.S. currency and that this could limit their exports to the United States. As an economic advisor to the Japanese central bank what kind of monetary policy would you suggest implementing to depreciate the yen against the dollar (wish to cl)? To explain, answer the following questions. [15 points] Note: Japan is the domestic economy, while the U.S. is the foreign country. The exchange rate is e = USS/yen. All gures are in \"NS. A) What kind of open market operation (0M0), whether it is selling or buying Japanese government bonds to or from Japanese commercial banks, would you recommend the Japanese central bank to enact to depreciate its currency (cl)? Assume that the selling or purchasing of Japanese bonds is worth 120 billion yens. B) If the reserve ratio (R) is 8%, what would the maximum change in the money supply be equal to? C) How does the change in money supply affect the real interest rate? Explain and illustrate your answer with a money market graph. D) How does the change in interest rate (part c) depreciate the yen (el)? Explain and illustrate your answer with a foreign exchange market graph