Question 18 Suppose the annual growth rate of the nominal exchange rate. expressed in euros per Australian dollar. is 4%. while Eurozone has an annual 6% ination rate. If purchasing power parity holds. what is the annual ination rate in Australia? 2% 6% Question 19 The demand for Australian dollars in the foreign exchange market equals 12, 000 2, 0002 and the supply of Australian dollars in the foreign exchange market equals 3, 000 + 3.0002. where e is the nominal exchange rate expressed in yen per Australian dollar. If the Australian dollar is xed at 2 yen per Australian dollar. then to maintain this xed rate, what is the required change in the Reserve Bank of Australia's holdings of yen? decrease by 18.000 yen increase by 18,000 yen decrease by 2,000 yen increase by 2.000 yen Question 20 Use the following information about Australia to answer the question: Sale of wool to Italy is $300, tuition paid by overseas students is $700. dividend payments made by overseas rms to Australian companies is $1,000. purchase of overseas stocks by Australian residents is $500. and purchase of Australian government bond by foreign investors is $1.300. What is the balance of the current account in Australia? $1.700 $2.000 $1.000 $800