If the RBA wants to expand output, it could:

Select one:

a.

Lower the cash rate and sell securities through quantitative easing

b.

Raise the cash rate and buy securities through quantitative easing

c.

Raise the cash rate and sell securities through quantitative easing

d.

Lower the cash rate and buy securities through quantitative easing

All else equal, which would result in a steeperAD curve?

Select one:

a.

An increase in the marginal propensity to consume (c₁)

b.

An increase in the marginal propensity to import (m)

c.

An increase in the policy rate (i)

d.

An increase in the tax rate (t)