Which of the following is NOT a short- run effect of a decrease in the cash rate?
A) The inflation rate increases.
B) Aggregate supply increases.
C) Aggregate demand increases.
D) Net exports increase.
Correct Answer:
Verified
Q15: An inflation rate targeting rule
A)has been adopted
Q16: When the Reserve Bank increases the cash
Q17: The Reserve Bank of Australia engages in
Q18: During the financial crisis of 2008- 2009,
Q19: In the short run, the Reserve Bank
Q21: By law, the objectives of the Reserve
Q22: If the Reserve Bank of Australia wished
Q23: If the Reserve Bank of Australia wants
Q24: Open market operations by the Reserve Bank
Q25: Long- term interest rates are _ than
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