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After the Global Financial Crisis, former governor A suggested that the Reserve Bank of Australia should print money (lower the interest rate) in order to
After the Global Financial Crisis, former governor A suggested that the Reserve Bank of Australia should print money (lower the interest rate) in order to increase output. While another former governor B countered that they should only print money if the government simultaneously cut spending. Explain in turn the likely impact of each of their suggestions and comment on the implied differences in their views on the state of the economy (g whether they assume Australia economy is at or below full employment)
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