Multiple Choice
Which of the following is correct?
A) Changes in the cash rate and longer- term rates affect inflation and the real economy through the transmission mechanism.
B) The change in the cash rate will affect longer- term interest rates (the yield curve) in a way that is determined by changes in market interest rate expectations.
C) The RBA carries out market operations so that the money base (balances in ESAs) is consistent with the cash rate the Bank has set.
D) All of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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