When the Reserve Bank of Australia lowers the cash rate, the Australian dollar on the foreign exchange market and .

Question

Quizplus · Accepted Answer

When the Reserve Bank of Australia lowers the cash rate, it typically leads to a depreciation of the Australian dollar because lower interest rates make the currency less attractive to foreign investors. This depreciation can make exports cheaper and imports more expensive, thereby increasing aggregate demand.

When the Reserve Bank of Australia Lowers the Cash Rate