Because Australia is an open economy, RBA policies will have

Select one:

a. no impact on macroeconomic equilibrium because its polices will be offset by the capital inflows and outflows.

b. a smaller impact on the macroeconomic equilibrium compared to a closed economy.

c. a larger impact on the macroeconomic equilibrium compared to a closed economy.

d.no impact on macroeconomic equilibrium because its polices will be offset by the movement in the exchange rate