Dollar rather than allowing the exchange rate to fall

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Reference no: EM13774035

Which of the following choices explains why Japan would want to maintain a fixed exchange rate at 150 yen per U.S. dollar rather than allowing the exchange rate to fall to 120 yen per U.S. dollar?

A. To keep U.S. imports cheaper for Japanese citizens

B. To make Japanese exports cheaper for U.S. citizens

C. To add to its reserves of U.S. currency

Explain.

Reference no: EM13774035

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