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Please answer this question in full sentences to gain both marks. Thank you. (v) In response to Covid-19 the RBA reduced its target for the

Please answer this question in full sentences to gain both marks. Thank you.

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(v) In response to Covid-19 the RBA reduced its target for the Cash rate from 0.75 to 0.25 percent. Discuss two different mechanisms by which this policy might stimulate economic activity. (2 marks)

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