If the Australian Reserve Bank wants to expand the money supply,it will:

Name: If the Australian Reserve Bank wants to expand the money supply,it will:
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Question

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When the Reserve Bank of Australia (RBA) wants to expand the money supply, it purchases government securities from financial institutions. This increases the amount of funds banks have, and they would have a greater ability to lend money to businesses and households. This is known as an expansionary monetary policy. Therefore, the correct choice is A.

If the Australian Reserve Bank Wants to Expand the Money