Draw a demand and supply graph showing equilibrium in the money market (short-run). "Todays increase ininterest rates will help achieve this goal and further increases are likely to be required over the period ahead. Tight monetary policy stance of RBA will help to achieve the targeted inflation rate for Australia.Show how the Reserve Bank of Australia would accomplish the statement given using the short-run money market graph.

Explain how the Reserve ank of Australia conducts the open market operation to achieve this objective.