Australia lowers interest rate to 4.5%

The Reserve Bank of Australia (RBA) has cut interest rates from 4.75% to 4.5% in a bid to boost growth amid fears of a slowdown in the global economy (the BBC article can be found here). This could be a useful case study to use with AS macro-economists when studying monetary policy so I have clipped the article and added a couple of questions onto this document to test analysis and evaluation of interest rate changes.

Aus_Int_Rate_Cut.docx