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The demand and supply for Fijian dollars in the foreign exchange market is: Demand = 30,000 - 8,000e Supply = 25,000 + 12,000e where e
The demand and supply for Fijian dollars in the foreign exchange market is: Demand = 30,000 - 8,000e Supply = 25,000 + 12,000e where e is the nominal exchange rate expressed as Australian dollars per Fijian dollar. The Fijian dollar is fixed at 0.2 Australian dollars. What operation do Fijian authorities have to undertake to maintain this fixed exchange rate? a. Fijian authorities would need to buy 1,000 Fijian dollars in foreign exchange markets. b. None of the other answers are correct. C. Fijian authorities would need to sell 20,000 Fijian dollars in foreign exchange markets. d. Fijian authorities would need to buy 20,000 Fijian dollars in foreign exchange markets., e. Fijian authorities would need to sell 1,000 Fijian dollars in foreign exchange markets
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