The 'Announcement Effect' of Monetary Policy Refers To

question 68

Multiple Choice

The 'announcement effect' of monetary policy refers to:

• A) the destabilising effect of the RBA governor announcing his retirement.
• B) the media outcry whenever banks announce an increase in interest rates.
• C) the impact on expectations resulting from public announcement of changes to the RBA's interest rate target.
• D) the fallout in 1997 when the Wallis Inquiry findings were released.

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Definitions:

Behavior

The actions or reactions of a person or animal in response to external or internal stimuli.

Ergonomics

The scientific discipline concerned with understanding human interactions and designing systems, products, and environments that enhance safety, comfort, and performance.

Psychology Department

An academic department in universities focused on the study of human behavior, thoughts, and emotions.

Cultural Influences

The impact of the beliefs, norms, and values of a society or group on the behavior, attitudes, and practices of its members.