
Passage: The Fed has always wanted to launch a third round of quantitative and loose monetary policy, also known as QE3, to boost the recovery of the US economy. If the Fed launches QE3, the global supply of dollars will increase sharply again, and countries will have to buy dollar assets in order to maintain exchange rate stability. If countries buy dollar assets, it will increase inflationary pressure in their own countries. If you don't want to import inflation, countries have to let their currencies appreciate. If the local currency appreciates, it will depress domestic exports and lead to an economic downturn.
Question: If the above statement is true, which of the followings must be true?
A. A.If the Fed launches QE3, other countries should not buy dollar assets if they want to avoid a downturn in their own economies.
B. B.Other countries are either facing imported inflationary pressures or are in danger of economic decline.
C. C.If other countries do not have imported inflation and currency appreciation, the Fed does not launche QE3.
D. D.If other countries do not experience imported inflationary pressures, they will not let their currencies appreciate.
Answer: