The Effect of an Increase in Interest Rates by the RBA

question 67

Multiple Choice

The effect of an increase in interest rates by the RBA is likely to be:

• A) the AD curve shifting left.
• B) the AD curve shifting right.
• C) the AS curve shifting right.
• D) the AS curve shifting left.

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Definitions:

Kirchhoff's Laws

Rules in electrical circuits that describe the conservation of charge and energy, encompassing both the current law (KCL) and the voltage law (KVL).

Electrical Currents

The flow of electric charge through a conductor, measured in amperes.

Ohms

A unit of electrical resistance defining the electrical opposition to current flow.