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(a) Assume that Australia is in a recession and the government facing a large debt has asked you to recommend one fiscal policy tool to
(a) Assume that Australia is in a recession and the government facing a large debt has asked you to recommend one fiscal policy tool to combat the recession. Discuss the pros and cons of your recommended fiscal policy tool. (b) "In 2020, the Reserve Bank of Australia (RBA) cut the official cash rate twice - down to 0.25 percent in March and down to 0.1 percent in November to counter the economic downturn caused by the coronavirus pandemic". The above statement suggests that rate cuts by RBA since 2019 may have been ineffective. Explain why the rate cuts may have been ineffective
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