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Which of the following best describes how the Reserve Bank of Australia (RBA) implements a change in official interest rates? The RBA manipulates base money
Which of the following best describes how the Reserve Bank of Australia (RBA) implements a change in official interest rates? The RBA manipulates base money by selling and buying bonds to change the cash rate in the overnight money market. KO The RBA resets the policy interest rate corridor and then guide the cash rate to its new target. The RBA resets the policy interest rate corridor and then use quantitative easing to keep the cash rate at its new target. O The RBA announces a change in the target cash rate and then uses bond purchases and sales to keep the cash rate at its new target
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