Which of the following are policy instruments available to the Reserve Bank as it tries to achieve its macroeconomic goals?
i. Government expenditure on goods and services and taxes.
ii. The government budget deficit or surplus.
iii. Changes in the cash rate.

Question

Quizplus · Accepted Answer

The Reserve Bank primarily uses monetary policy instruments to achieve its macroeconomic goals, one of which is adjusting the cash rate. Government expenditure and taxes, as well as the budget deficit or surplus, are fiscal policy tools, typically managed by the government, not the central bank.

Which of the Following Are Policy Instruments Available to the Reserve