T6 EIC 5 (Tutorial)
When the RBA enacts contractionary monetary policy, which of the following statements are TRUE ? (select all correct answers only, selecting an incorrect answer will result in a mark penalty. Selecting all available options will result in the offset of correct and incorrect answers that totals 0 marks.)

Question

T6 EIC 5 (Tutorial) 
 When the RBA enacts contractionary monetary policy, which of the following statements are  TRUE ?  (select all correct answers only, selecting an incorrect answer will result in a mark penalty. Selecting all available options will result in the offset of correct and incorrect answers that totals 0 marks.)

Answer

Consumers will be encouraged to borrow more due to lower interest rates on loans.

Answer

Consumers will be encouraged to invest more due to higher rates of return on investments.

Answer

Banks will face a lower cost of capital.

Answer

Banks will face a higher cost of capital.

Answer

Existing mortgage borrowers on a fixed rate will experience a fall in loan repayments.

Answer

Existing mortgage borrowers on a variable rate will experience an increase in loan repayments.

Answer

There will be an increase in new mortgage borrowers.

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T6 EIC 5 (Tutorial) When the RBA enacts contractionary monetary policy, which ...

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