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Question 4 4.1. Explain the relationship between the real interest rate and private consumption spending. Why might this relationship be stronger now than before deregulation

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Question 4 4.1. Explain the relationship between the real interest rate and private consumption spending. Why might this relationship be stronger now than before deregulation of the Australian banking system in the early 19905? 4.2. What is a Monetary Policy Rule? Who applies this Rule; how does it work? 4.3. What is the primary reason the RBA seeks to target the inflation rate

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