19. The demand for Australian dollars in the foreign exchange market equals 12,000–2,000e and the supply of Australian dollars in the foreign exchange market equals 3,000+3,000e, where e is the nominal exchange rate expressed in yen per Australian dollar. If the Australian dollar is fixed at 3 yen per Australian dollar, then to maintain this fixed rate, what is the required change in the Reserve Bank of Australia's holdings of yen? a. decrease by 18,000 yen b. increase by 18,000 yen c. decrease by 2,000 yen d. increase by 2,000 yen

19. The demand for Australian dollars in the foreign exchange market equals 12,000–2,000e and the supply of Australian dollars in the foreign exchange market equals 3,000+3,000e, where e is the nominal exchange rate expressed in yen per Australian dollar. If the Australian dollar is fixed at 3 yen per Australian dollar, then to maintain this fixed rate, what is the required change in the Reserve Bank of Australia's holdings of yen? a. decrease by 18,000 yen b. increase by 18,000 yen c. decrease by 2,000 yen d. increase by 2,000 yen

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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