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The demand for Australian dollars in the foreign exchange market equals 12000 20006 and the supply of Australian dollars in the foreign exchange market equals

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The demand for Australian dollars in the foreign exchange market equals 12000 20006 and the supply of Australian dollars in the foreign exchange market equals 7000 + 30006, where e is the nominal exchange rate expressed in euros per Australian dollar. Which of the following is true? (E) To achieve 1 euro per Australian dollar, the Reserve Bank must acquire more euros 0 To achieve 1 euro per Australian dollar, the Reserve Bank must deplete the holdings of euros 0 To achieve 2 euros per Australian dollar, the Reserve Bank must deplete the holdings of euros 0 None of the above

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