Explanation When Countries C and J central banks purchase Country U’s treasury bonds, it means that these central banks have to pay more US dollars to the Country U’s treasury. This increases the demand for US dollars in the currency exchange market whereas increases the supply of Yen as well as Country C’s currency. Thus, the US dollar would appreciate relative to the Countries C and J’s currencies in the currency exchange market. When the US dollar appreciates, it makes Country U’s goods and services costly in the international market whereas Countries C and J’s goods and services to be cheaper in Country U’s economy. As a result of this, the imports to Country U’s economy become cheaper and increase against the costly exports, which will decrease. The political leaders claim that these increased imports cause the loss of jobs and reduce the output of Country U’s economy...