Determine the level of consumption

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1. The central/reserve bank of Australia (The RBA) has two major roles. List the two major roles and briefly discuss their importance to the Australian economy (you may select another country).

2. The five most important variables that determine the level of consumption listed below. Briefly discussed how the variables can affect consumption in Australia (or country of your choice).

a. Current disposable income

b. Household wealth

c. Expected future income

d. The price level

e. The interest rate

Reference no: EM132324087

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