What would be the effect on the following

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(a)If the Central Bank (Reserve Bank ofAustralia) bought $100 million of government securities from private sector money markets, other things being equal, what would be the effect on the following?

(i)The economy's monetary base;

(ii)Short-term money market interest rates;

(iii)Longer maturity interest rates;

(iiii)Aggregate demand, economic activity and inflation.?

Reference no: EM131086554

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