The cash rate is initially at its target value. There are then large tax payments from commercial bank's exchange settlement accounts to the government. What action would the RBA take to restore the cash rate to its target value? Question 17 Answer a. The RBA would conduct open market operations to decrease the supply of ESA funds by selling bonds to banks. b. The RBA would conduct open market operations to decrease the supply of ESA funds by buying bonds from the banks. c. The RBA would conduct open market operations to increase the supply of ESA funds by buying bonds from the banks. d. The RBA would increase government spending. e. The RBA would conduct open market operations to increase the supply of ESA funds by selling bonds to banks