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2.2 Aggregate demand (AD)

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Question 10

Reserve Bank of Australia (RBA) official cash rate, 2019–2021

PeriodCash Rate (%)
2019 (Jan)1.50
2019 (Jul)1.00
2019 (Oct)0.75
2020 (Mar)0.25
2020 (Nov)0.10
2021 (Jan)0.10
2021 (Nov)0.10

With reference to the table above, explain the likely impact of a reduction in the central bank cash rate on Australian business investment.

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2.2 Aggregate demand (AD) Questions

  1. A Level
  2. /Economics
  3. /2.2 Aggregate demand (AD)