If the RBA Wants to Reduce Inflation in the Economy,it

question 63

Multiple Choice

If the RBA wants to reduce inflation in the economy,it is likely to:

• A)buy government securities to put banks' ESAs into surplus, thereby decreasing interest rates.
• B)buy government securities to put banks' ESAs into deficit, thereby decreasing interest rates.
• C)sell government securities to put banks' ESAs into surplus, thereby increasing interest rates.
• D)sell government securities to put banks' ESAs into deficit, thereby increasing interest rates.
• E)sell government securities to put banks' ESAs into deficit, thereby decreasing interest rates.

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Definitions:

Physical Closeness

The proximity or touching between individuals that can foster emotional bonding or therapeutic benefits.

Intrusive

Unwanted or disturbing thoughts, images, or urges that enter the mind, often causing distress or discomfort.

Clarification

A technique used in counseling and communication to make sure that the speaker's message is understood correctly by asking for more information or for the message to be repeated in a clearer manner.

Paraphrase

The rewording or rephrasing of a text or passage to achieve clearer understanding.