Read the following statement from RBA Governor, Glenn Stevens. http://drive.goog

Question

Read the following statement from RBA Governor, Glenn Stevens. http://drive.google.com/file/d/0B-vDGEamn7d7blhwWW5VblhrWHM/view?usp=sharing 1. This article mentions that signs of improvement in investment intentions remain tentative. In the macroeconomy, deteriorating economic conditions could be due to: a. decreases in the national debt b. decreases in spending on factories, housing and inventories c. consumers buying too much on credit d. increases in investment spending 2. This article mentions that interest rates are very low and savers continue to look for higher returns in response to low rates on safe instruments. If consumers change their saving and spending plans, it's likely there will be no change in the multiplier. a. True b. False 3. Growth throughout Europe and the U.S is unlikely to have an impact on net exports for Australia. a. True b. False

Explanation / Answer

1. option B is correct

2. false, definitely there will be a chnge in multiplier

3. true

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