Which of the Following Characterises the Ability of the Reserve

question 54

Multiple Choice

Which of the following characterises the ability of the Reserve Bank of Australia (RBA) to prevent recessions?

• A)The RBA is able to 'fine tune' the economy and entirely eliminate recessions.
• B)The RBA is incapable of changing aggregate demand through its monetary policy tools.
• C)The RBA may be able to keep a recession shorter and milder than it would otherwise be.
• D)The RBA may be able to eliminate the business cycle and achieve absolute price stability.

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Definitions:

Experimental Design

The planning of an experiment to ensure that it can test hypotheses effectively and produce valid and reliable results.

Attrition

The loss of participants during the course of a study, which can potentially bias the results.

Maturation

The process of growth or development, often in the context of organisms or psychological development in research.

Diffusion

The process by which an innovation is communicated through certain channels over time among members of a social system.