Question
. In May 2016 the RBA cut the official cash rate from 2.00% to 1.75%. Aggregate demand is made up of four components: Consumption, Investment,
. In May 2016 the RBA cut the official cash rate from 2.00% to 1.75%.
Aggregate demand is made up of four components:
Consumption,
Investment,
Government Spending minus Taxation,
Exports minus Imports.
Which two (2) of these components (above) would most likely (most typically) have changed due to the reduction in the cash rate and why?
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Applied Corporate Finance A Users Manual
Authors: Aswath Damodaran
2nd Edition
9780471660934
