GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If economic activity is low in a country, would the RBA increase or decrease the cash rate?
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Increase
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Decrease
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Affordable loans and higher property prices: When the RBA lowers the cash rate, it can make it cheaper and easier for you to borrow money for property. This usually stimulates demand for property and leads to higher property prices.
Detailed explanation-2: -The Board has increased interest rates materially since May. This has been necessary to establish a more sustainable balance of demand and supply in the Australian economy to help return inflation to target. The Board expects to increase interest rates further over the period ahead.
There is 1 question to complete.