3. The currency stabilization fund Suppose the Brazilian government recognizes that its reliance on coffee exports makes it vulnerable to the Dutch Disease. On the one hand, if coffee prices increase, the Brazilian real will appreciate, the real exchange rate will increase, and the nation's exports will become more expensive for other countries to buy. On the other hand, if coffee prices fall, the Brazilian real will depreciate, and the country's revenues will decline. The Brazilian government creates a currency stabilization fund to maintain a stable exchange rate to avoid a negative outcome. To stabilize the value of a currency within a certain range, the stabilization fund managers take one of the following actions