When the Reserve Bank of Australia raises the cash rate, other
A) interest rates fall, consumption, investment and net exports decrease, and the aggregate demand curve shifts leftward.
B) interest rates rise, consumption, investment and net exports increase, and the aggregate demand curve shifts rightward.
C) interest rates rise, consumption, investment and net exports decrease, and the aggregate demand curve shifts leftward.
D) interest rates fall, consumption, investment and net exports increase, and the aggregate demand curve shifts rightward.
Correct Answer:
Verified
Q80: Currently the Reserve Bank of Australia targets
A)both
Q81: Q82: If the Reserve Bank of Australia lowers Q83: If the Reserve Bank of Australia raises Q84: In the short run, monetary policy can Q86: The cash rate is determined by equilibrium Q87: If the Reserve Bank of Australia lowers Q88: The central bank of Cobra sells securities Q89: The output gap can be used to Q90: If the Reserve Bank of Australia wanted
A)raise
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