If the central bank reserve bank ofaustralia bought 100


(a)If the Central Bank (Reserve Bank ofAustralia) bought $100 million of government securities from private sector money markets, other things being equal, what would be the effect on the following?

(i)The economy's monetary base;

(ii)Short-term money market interest rates;

(iii)Longer maturity interest rates;

(iiii)Aggregate demand, economic activity and inflation.?

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Econometrics: If the central bank reserve bank ofaustralia bought 100
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