If the Economy Is Inflationary, the RBA Would Most Likely

question 81

Multiple Choice

If the economy is inflationary, the RBA would most likely:

• A) encourage banks to provide loans by lowering the cash rate.
• B) encourage banks to provide loans by raising the cash rate.
• C) restrict bank lending by lowering the cash rate.
• D) restrict bank lending by raising the cash rate.

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