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Word File Edit View Insert Format Tools Table Window Help B . Fri 1:51 pm Q DE ... G about:blank AutoSave OFF pop - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Grammarly Tell me Share Comments Arial 12 A" A Aav AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdE AaBb( G Paste I Uvab X X A LA E Normal No Spacing Heading 1 Heading 2 Title Styles Dictate Sensitivity Open Pane Grammarly a) At the same time as the RBA is reducing interest rates the Australian Government will be running a budget deficit in 2020. How this will affect aggregate demand? A diagram would assist your answer here and attract further marks b) How will the size of the marginal propensity to consume affect the size of the multiplier and how will this impact on this fiscal policy initiative? c) If consumers decide to increase their rate of savings due to increasing uncertainty about the future, explain how this will affect the fiscal policy initiative. d) Discuss whether this fiscal policy initiative aligns with the RBA's decision to reduce interest rates. Page 4 of 6 1249 words English (United States) Focus E E + 312% OCT 9 City N MPS W

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