In a floating exchange rate regime, which of the following alternatives should the Japanese central bank undertake if there is an increase in the demand for the US dollar in Japan? Group of answer choices leave the market alone and allow the US dollar to appreciate leave the market alone and allow the US dollar to depreciate buuy dollars in the foreign exchange markets. sell dollars in the foreign exchange markets.

Economics (MindTap Course List)
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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter34: International Finance
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In a floating exchange rate regime, which of the following alternatives should the Japanese central bank undertake if there is an increase in the demand for the US dollar in Japan? Group of answer choices leave the market alone and allow the US dollar to appreciate leave the market alone and allow the US dollar to depreciate buuy dollars in the foreign exchange markets. sell dollars in the foreign exchange markets.

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