Q21.

After the cash rate increase by the RBA, we can expect to observe

Select one:

a.all answers are correct

b.exchange rate appreciation if the increase was unexpected by the market

c.increase in the interest rates charged by the commercial banks, which slows consumption spending.

d.increase in the interest rates in the market for loanable funds, which reduces investment spending.

Q22.

Demand deposits

Select one:

a.are a liability for a bank that accepts them

b.are considered to be a liquid asset

c.all answers are correct

d.are part of M1

Q23.

Australia's financial account will not include

Select one:

a.An increase in Australian government's asset holdings in foreign countries

b.Income received by Australian residents from investments made overseas

c.all answers are incorrect

d.An increase in asset holdings in foreign countries by Australian residents

Q24.

The unemployment resulting from workers laid off due to a temporary supply shock during the Coronavirus pandemic can most likely be classified as

Select one:

a.frictional unemployment

b.cyclical unemployment

c.government-imposed unemployment

d.natural unemployment

Q26.

Which of the following would be considered a fiscal policy action?

Select one:

a.NSW state government subsidy to wind farms

b.All answers are correct

c.An income tax increase to slow down the growth in aggregate demand

d.Australian Taxation Office ramping up auditing to catch income tax evaders