The RBA in Australia has chosen to expand the money rate focus by 25 premise focuses to 3.10 percent. It likewise expanded the loan cost on Trade Settlement adjusts by 25 premise focuses to 3.00 percent

In light of the change in the cash rates, specify the term used to define the stance of the monetary policy that has been taken by the institution. In using an appropriate drawing of money demand and money supply diagram, explain the process that the institution will undertake in implementing such policy. Further, briefly describe what would be the impacts of the policy implemented on the relevant and various macroeconomic measures of the economy.