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If the Central Bank (Reserve Bank of Australia) bought $100 million of government securities from private sector money markets, other things being equal, what would
If the Central Bank (Reserve Bank of Australia) bought $100 million of government securities from
private sector money markets, other things being equal, what would be the effect on the following?
(2.5 marks each)
i
The economy's monetary base;
ii
Short-term money market interest rates;
iii
Longer maturity interest rates;
iv
Aggregate demand, economic activity and inflation
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