The RBA is required to ensure that:
A)prices of all products need to increase by a maximum of 3 per cent per annum
B)target inflation is at 2-3 per cent
C)there is adequate money available for the government's projects
D)all of the above

Question

Quizplus · Accepted Answer

The RBA's main objective is to maintain price stability, which is achieved through a target inflation rate of 2-3 per cent over the medium term. The RBA is not responsible for ensuring that there is adequate money available for the government's projects, as that falls within the realm of fiscal policy. Therefore, options A and C can be ruled out.

The RBA Is Required to Ensure That