Which of the Following Characterises the Ability of the Reserve

Multiple Choice

Which of the following characterises the ability of the Reserve Bank of Australia (RBA) to prevent recessions?

A) The RBA is able to 'fine tune' the economy and entirely eliminate recessions.
B) The RBA is incapable of changing aggregate demand through its monetary policy tools.
C) The RBA may be able to keep a recession shorter and milder than it would otherwise be.
D) The RBA may be able to eliminate the business cycle and achieve absolute price stability.