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Suppose the Japanese government is concerned about the value of its currency, the yen. and decides to introduce a xed exchange rate regime with a
Suppose the Japanese government is concerned about the value of its currency, the yen. and decides to introduce a xed exchange rate regime with a target above the current equilibrium rate. Classify each policy as to whether it would help or hurt Japan's efforts to raise the exchange rate of the yen. a. introduce restrictions on the ability of foreigners to buy yen I - I help b. raise Japan's interest rate through monetary policy hurt it. get Japan's central bank to sell their foreign exchange reserves - 11. get Japan's central bank to buy more foreign exchange reserves
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