Home / Questions / .The U.S. dollar appreciates, and U.S. official reserves increase. Explain which of the fo
.The U.S. dollar appreciates, and U.S. official reserves increase. Explain which of the following events might have caused these changes to occur and why.
?The Fed intervened in the foreign exchange market and sold U.S. dollars.
?The Fed conducted an open market operation and sold U.S. bonds.
?People began to expect that the U.S. dollar would appreciate.
?The U.S. interest rate differential narrowed.
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