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Consider the following chart. (a) Identify the actual current level of the cash rate. Compared to the current cash rate, does the new target cash

Consider the following chart.
(a) Identify the actual current level of the cash rate. Compared to the current cash rate, does the new target cash rate represent contractionary or expansionary monetary policy?(2marks)
(b) Briefly explain the effects lower interest rates have on consumption and investment in an economy.(2 marks)

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