Suppose the Australian dollar floats against the US dollar and the demand for Australian dollars in the foreign exchange market is given by Q = 125 - 50E where Q denotes the quantity of AUD and E denotes the nominal exchange rate expressed in USD per AUD.  The supply of Australian dollars is given by Q = 25 + 50E. What is the equilibrium nominal exchange rate? 0.75 1.25 0.50 1.00

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