KOI Student Teachers' Contact Administration Contact Web UP Website Portal List List Print Serv Time left 1:43:06 In 2020 at the Reserve Bank of Australia (RBA) decreased the to 0.1 percent to enable the economy to recover from the severe recession 1 caused by the COVID-19 pandemic. However, on 4th May 2022, the RBA increased the cash rate by 0.25%, to reduce rising inflation rate. 10 Part A: What type of monetary policy did the RBA implement on 4th May Finis 2022? Outline the RBA's monetary policy transmission process, from the announcement through to real GDP. (5 marks) USD/AUD Q1" Quantity of AUD Part B: The Australian dollar (AUD) started to appreciate against the US dollar (USD) after the BBA increased the cash rate on 4th May 2022. Explain why MacBook AirKOI Student Teachers' Contact Administration Contact Web JP Website Portal List List Print Services USD/AUD Time left 1:42:50 Chart Area Quantity of AUD Part B: The Australian dollar (AUD) started to appreciate against the US dollar (USD), after the RBA increased the cash rate on 4th May 2022. Explain why and how the AUD has been appreciating in reaction to the RBA monetary policy action. Your answer must include the actions financial investors in Australia and the United States. You may use the flexible exchange rate diagram above to illustrate your answer. Assume the initial equilibrium point is A. (8 marks). Part C: What would be the impact of the appreciating AUD on net exports (NX) in Australia and the United states, ceteris paribus? Briefly explain. (2 marks) INSTRUCTIONS 1 TYPE YOUR ANSWERS IN THE SPACE PROVIDED BELOW MacBook Air