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If the Reserve Bank of Australia sells financial securities, this: a. decreases bank reserves, increases interest rates, and discourages banks to make more loans. b. decreases bank reserves, increases interest rates, and encourages banks to make more loans. c. increases bank reserves, causes banks to increase their loans, and increases interest rates. d. increases reserves, causes banks to reduce their loans, and decreases interest rates

If the Reserve Bank of Australia sells financial securities, this: a. decreases bank reserves, increases interest rates, and discourages banks to make more loans. b. decreases bank reserves, increases interest rates, and encourages banks to make more loans. c. increases bank reserves, causes banks to increase their loans, and increases interest rates. d. increases reserves, causes banks to reduce their loans, and decreases interest rates

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If the Reserve Bank of Australia sells financial securities, this:

a.

decreases bank reserves, increases interest rates, and discourages banks to make more loans.


b.

decreases bank reserves, increases interest rates, and encourages banks to make more loans.


c.

increases bank reserves, causes banks to increase their loans, and increases interest rates.


d.

increases reserves, causes banks to reduce their loans, and decreases interest rates

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