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As the Sole Issuer of Australian Money, the Reserve Bank

Question 3

Multiple Choice

As the sole issuer of Australian money, the Reserve Bank of Australia can set any one of three variables:


A) the monetary base, the exchange rate and the short- term interest rate.
B) the inflation rate, the unemployment rate and the real economic growth rate.
C) the exchange rate, the interest rate and the inflation rate.
D) the rate of inflation, the interest rate and the unemployment rate.

Correct Answer:

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