Buy custom The factors determining movements in the general level of variable and fixed term interest rates in Australia
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1303 |
Essay's paper body
If there is high inflation, RBA will use the tight money policy to limit the supply of funds in order to fall the inflation rate.
2. Unemployment
If there is high unemployment, RBA is willing to ease the money supply to stimulate economy to create more job vacancies.
To choose lower inflation or lower unemployment, it seems difficult to achieve both...
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In short term, rising in aggregate demand hugely associates with higher inflation and lower unemployment. At the moment, RBA still decides to carry out the tight money policy. Under the circumstance, unemployment will increase. However in the long run, the stable economy and inflation may reduce the unemployment...
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General points of the essay
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monetary policy and inflation
The factors determining movements in the general level of variable and fixed term interest rates in Australia
The factors mentioned in articles can cool down the inflation.
term structure of interest rates
Variable or Fixed Cost
the rising trend of inflation in australia
What actions might a government take in order to reduce the rate of inflation in the economy?
Monetary policy, inflation and growth
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