Since the Early 1990s,the RBA Has Implemented Monetary Policy Primarily

question 53

Multiple Choice

Since the early 1990s,the RBA has implemented monetary policy primarily by focusing on:

• A)interest rates.
• B)the money supply.
• C)the demand for money.
• D)the velocity of money.
• E)unemployment.

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Definitions:

Opportunity Cost

The benefit that is missed or given up when an investor, individual, or business chooses one alternative over another.

Proposed Use

An intended or suggested way of utilizing something, often laid out in plans or discussions before implementation.

Cash

Physical money, such as coins and bills, or balances in checking or savings accounts, available for use immediately.

Differential Analysis

A decision-making process that focuses on the costs and benefits that change between decision alternatives.