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MACRO1 (ECON1010) Assignment 2

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Short Answer Questions: 1 The Reserve Bank of Australia (RBA) has the following three options to influence the money supply in the Australian financial market. Give a brief description of how each operates. a) Open market operations (2 marks) It refers to the banks buying and selling government securities to expand or contract the money supply in the economy. There are 2 operations: open market purchases (to stimulate growth and increase money supply), and open market sales (to contract the economy and reduce money supply).

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MACRO1 (ECON1010) Assignment 2
Topics this document covers:
Economy Economics Macroeconomics Market Demand Monetary policy Interest rates Inflation Supply and demand Money supply Economic equilibrium AD–AS model
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Topics this document covers:
Economy Economics Macroeconomics Market Demand Monetary policy Interest rates Inflation Supply and demand Money supply Economic equilibrium AD–AS model
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! This!assignment!contributes!to!20%'of'the'overall'marks!for!the!course.!! 2.! Only' a' single' submission! permitted! (hence,! please! ensure! to! attach! the! file! version! of! the! assignment)' 3.! Use' and' Submit' this' template' only' for'your'submission'(i.e.,' write' down' your' answers' in' the' space' provided'...
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