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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
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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