Which of the following statements do you agree with? (Marks will be deducted for wrong answers).

Select one or more:

a. RBA will decrease money supply to increase interest rates.

b. RBA will decrease money supply to slow down the economy.

c. Decreasing tax and anticipating consumers to increase spending is LESS expansionary direct spending into the economy by the Government.

d. To keep inflation between 2% and 3%, RBA will decrease money supply if the annual inflation rate falls below 2%.

e. It is good policy for the Government to run a budget SURPLUS during these COVID19 pandemic times.