If the Reserve Bank uses open market operations to offset a recession, it ________ government securities in order to ________ the cash rate.

Name: If the Reserve Bank uses open market operations to offset a recession, it ________ government securities in order to ________ the cash rate.
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Question

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By buying government securities, the Reserve Bank injects money into the banking system, which typically lowers interest rates, including the cash rate, to stimulate economic activity during a recession.

If the Reserve Bank Uses Open Market Operations to Offset