If the Reserve Bank decreases the cash rate, other short- term interest rates and the exchange rate .

Name: If the Reserve Bank decreases the cash rate, other short- term interest rates and the exchange rate .
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

When the Reserve Bank decreases the cash rate, it typically leads to a decrease in other short-term interest rates and also tends to cause the exchange rate to fall, as lower interest rates can reduce foreign investment in the currency.

If the Reserve Bank Decreases the Cash Rate, Other Short-