Interest rates and Fiscal & Monetary policy

3.1 Explain the rate that RBA sets and how this rate influences other rates within an economy. Support your response with a relevant graph.

3.2 Describe what are 'ES' funds and their relationship with cash rate and cash market. Explain through a graph why the demand curve for ES funds is downward sloping.

3.3 In July 2019, the Australian Government announced $158b of tax cuts. Describe the nature of this policy and support your answer with relevant graph on how this will impact aggregate expenditure and inflation levels.

3.4 What is the difference between nominal and real interest rates? Describe RBA's policy rule and draw a relevant graph to support your answer.

3.5 Explain how fiscal and monetary expansion policy would differ in investment by tourism businesses and impact on tourism imports and exports.