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AutoSave OFF wa pop - Saved to my Mac Q Home Insert Draw Design Layout References Mailings Review View Grammarly ? Tell me Share Comments

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AutoSave OFF wa pop - Saved to my Mac Q Home Insert Draw Design Layout References Mailings Review View Grammarly ? Tell me Share Comments Arial v 12 24 T AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdE AaBb( , G Paste BI Uvab X x|A LA Norma No Spacing Heading 1 Heading 2 Title Styles Dictate Sensitivity Open Pane Grammarly a) Concerned for the current state of the Australian economy the Reserve Bank of Australia (RBA) has decided to reduce interest rates. Describe the mechanism that the RBA will undertake to achieve this outcome. b) Explain how this reduced interest rate will transmit through the economy. c) What do you think would be the impact on the economy of this policy if the velocity component of the quantity theory of money equation M*V=P*Q was much slower than anticipated? d) What would be the likely affect if the RBA misjudged the state of the economy and it was closer to full employment than anticipated? A diagram would assist your answer here and attract more marks. Page 4 of 6 1249 words English (United States) Focus 297%

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