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Which of the following is NOT a correct statement? Question 2 options: If the U.S. government wants to reduce the inflation, the Fed should strengthen

Which of the following is NOT a correct statement?

Question 2 options:

If the U.S. government wants to reduce the inflation, the Fed should strengthen U.S. dollars by buying U.S. dollars with foreign currency.

Nonsterilized intervention is intervention by a central bank in the foreign exchange market without adjusting for the change in money supply.

If the U.S. government wants to reduce the unemployment, the Fed should strengthen U.S. dollars by buying U.S. dollars with foreign currency.

When using indirect intervention, a central bank is likely to focus on interest rates.

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