Answer to Question #90525 in Macroeconomics for Sung Eun Seok

Question

17. The cash rate is the interest rate on
A. overnight loans that banks make to each other
B. long-term loans made by banks to the public.
C. government loans from the Reserve Bank
D. public deposits in banks

18. The effect of lowering the cash rate by the Reserve Bank on the inflation rate. The inflation
rate:
A. increases
B. remains unchanged
C. stops
D. decreases

Answer 1

17a

18a