Discussion question 5 In times of recession and inflation Reserve Bank of Australia (RBA) may…

Discussion question 5 In times of recession and inflation Reserve Bank of Australia (RBA) may…

Discussion question 5
In times of recession and inflation Reserve Bank of Australia (RBA) may consider changing the interest rates. Using two diagrams one for expansionary monetary policy and one for contractionary monetary policy discuss how quantity of money supplied and interest rates are linked.