When the RBA purchases government securities, this acts simultaneously_________ the cash rate and_________the money supply.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
Correct Answer:
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Q6: Fiscal policy refers to:
A) the spending and
Q7: Which of the following is NOT an
Q8: The RBA is likely to decrease the
Q9: One of the main requirements for long-
Q10: Which of the following is NOT a
Q12: If the Government raises taxes by $25
Q13: Policy time lags can cause difficulties for
Q14: An open market purchase of government securities
Q15: Which of the following is an automatic
Q16: If the government wants to reduce unemployment,
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