If the RBA Believes the Economy Is Likely to Fall

question 29

Multiple Choice

If the RBA believes the economy is likely to fall into a recession over the next two quarters,its likely response to this will be to:

• A)sell government securities to banks in order to increase interest rates.
• B)sell government securities to banks in order to decrease interest rates.
• C)buy government securities from banks in order to decrease interest rates.
• D)buy government securities from banks in order to increase interest rates.
• E)decrease the money supply.

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Definitions:

Premenstrual Syndrome

Premenstrual syndrome (PMS) refers to a range of physical and emotional symptoms that many women experience in the week or two before their menstrual period.

Emotional PMS Symptoms

Emotional and behavioral symptoms associated with premenstrual syndrome, including mood swings, irritability, and depression.

Melatonin

A hormone that regulates sleep-wake cycles.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, regulating various bodily functions including sleep.