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If the Actions of the Government Bring the Cash Rate

Question 17

Multiple Choice

If the actions of the government bring the cash rate below the cash rate target,


A) the RBA will sell securities from banks to make the cash rate increase.
B) the RBA will buy securities from banks to make the cash rate increase.
C) the RBA will sell securities from banks to make the cash rate target decrease.
D) the RBA will buy securities to banks to make the cash rate target decrease.

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