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Concerned for the current state of the Australian economy the Reserve Bank of Australia (RBA) has decided to reduce interest rates a)What would be the

Concerned for the current state of the Australian economy the Reserve Bank of Australia (RBA) has decided to reduce interest rates

a)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.

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