In an economy with low inflation anWhen the Reserve Bank of Australia conducts expansionary monetary policy, it __________ in the short run, but __________ in the long run. Question 5Select one: A. Causes inflation; boosts economic growth B. Boosts demand; boosts supply C. Boosts demand; causes inflation D. Causes inflation; boosts outputd sluggish economic growth, the central bank decides to lower its policy interest rate. Which of the following is a potential unintended consequence of this decision? Question 4Select one: A. Depreciation of the domestic currency, boosting exports B. Lower mortgage rates, stimulating the housing market C. Increased borrowing by businesses for investment D. Reduced incentive for saving, leading to lower savings rates