Question: Please kindly help me answer this Question 1 a) Concerned for the current state of the Australian economy the Reserve Bank of Australia has decided
Please kindly help me answer this

Question 1 a) Concerned for the current state of the Australian economy the Reserve Bank of Australia has decided to reduce interest rates. Explain with theaid of a diagram of the money market how they will do this! (2 Mark b) Describe the determinants of Aggregate Demand and demonstrate on a diagram how a) above will affect aggregate demand. (3 Marks) c) At the same time as the RBA is reducing interest rates the Australian Government has a policy of attempting to attain a budget surplus by the budget year 2020/2021. Demonstrate on the same diagram as b) how this will affect aggregate demand. (2 Marks) d) Discuss whether the policy in c) aligns with the RBA's decision to reduce interest rates. (1 Mark]
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