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Suppose that to support the Australian dollar, the Reserve Bank of Australia (RBA) undertook a sterilized intervention of the size AUD 250 million. Using the

Suppose that to support the Australian dollar, the Reserve Bank of Australia (RBA) undertook a sterilized intervention of the size AUD 250 million. Using the balance sheet of RBA, explain how such a sterilized intervention would take place. What would be the outcomes of the intervention?

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