1)In response to the COVID-19 pandemic, Australian government implements numerous policies to provide economic support to the Australian economy. Briefly discuss the role played by the Australian government to rescue the economy.

[max 6 marks].

2)On April 7^th, 2020, Fitch Ratings Inc. downgrades Australia's four biggest banks credit ratings. How does this affect borrowers, lenders, and financial institutions? What are the implications of this downgrade to the health of the financial system?