RBA Decrease Rates for Christmas Introduction The mortgage sector is a fundamental component of any given economy. Australian economy is no exception. The Reserve Bank of Australia favored the Australian mortgage holders towards the end of the year 2011. RBA reduced mortgage related interest rates by up to 0.25% in two consecutive months…
Download file to see previous pages...
The economy is made up of various components and each and every single component affects the economy differently. In the explanation and analysis of the “RBA Decrease Rates for Christmas” article, a number of economic components are considered. These components aid intensive analysis of the article based on the context of actions taken by the RBA, Central Bank and the economic responses experienced in the financial markets and the economy at large. Aggregate demand and supply plays a central role in the economy, determining the overall level of performance of the economy1. Unemployment and inflation are key determinants of the direction that the economy takes and they both affect decisions made within the economic context. Monetary policy on the other hand is undertaken by the Central Bank as a measure to manage the economy alongside fiscal policy. The two measures are crucial in managing currency trends that further determine the level of inflation in the economy. Analysis in the Context of Economic Concepts/Theories Aggregate demand and Supply The economic model is made of different sectors and industries. Each constituent sector or industry contributes towards the overall welfare of the economy. Aggregate demand and supply denotes the entire economy’s output. ...
Aggregate demand brings on board total spending in the economy. The different levels of spending in the economy are made up of consumption, investment, government purchases and net exports3. The aggregate supply curve comprises of an inflationary and a non-inflationary region. This factor provides a basic principle for the required analysis in this paper. Different factors affect both aggregate demand and aggregate supply. However the interaction of the two is critical to any given analysis in the economy. National output can be either nominal or real, depending on the price base used in their computation. Where more stable prices are used to compute national output given an identified base year, real national output is computed. On the other hand, where current prices are used, nominal national output is computed. Real GDP is obtained when the aggregate demand and aggregate supply interact. On the same point, the resultant equilibrium results in the national inflation rate4. The figure below shows an aggregate demand-aggregate supply model: A number of factors affect both aggregate demand and aggregate supply. Only the factors that are important to this analysis will be highlighted. Income, wealth, credit availability, government demand, investment and future expectations on inflation, income, wealth and interest rates causes the aggregate demand curve to shift to the right upon an increase in any of them. An increase in some other factors causes the aggregate demand curve to shift leftwards. These are: interest rates and taxation. On the other hand, a rightward shift is observed on the aggregate supply when prior investment,
...Download file to see next pagesRead More
Cite this document
(“RBA Decrease Rates for Christmas Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1440921-rba-decrease-rates-for-christmas
(RBA Decrease Rates for Christmas Essay Example | Topics and Well Written Essays - 1750 Words)
“RBA Decrease Rates for Christmas Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/macro-microeconomics/1440921-rba-decrease-rates-for-christmas.
Official cash rate is the rate of interest which is used by the central banks of Australia and New Zealand for the purpose of adjusting the national interest rates. Official cash rates are interest rates which are paid by the RBA in the overnight money market to adjust the overall national economy’s interest rates.
However, most of Christmas practices are drawn from pegan festivals were simply incorporated into Christmas. Others like exchanging of gifts, making fire logs and decorating trees among others were common practices in the winter.
While portraying the characters, Dickens employs creativity within the scenario of linguistics. In the novella, Dickens’ tone of writing changes from unhappiness to happiness. Besides, the style (literary hymn to Christmas season) and form (allegory) of the story are significant.
All around the walls, the house was bedecked in bright red and yellow floral allure of Christmas imagery and other accoutrements that complete the picture of the special day. The plastic flowers in the gigantic ceramic flower vase looked so real that one had to touch them just to confirm they were not.
The Christmas holiday has for a long time been celebrated by the Christendom to mark the birth of their savior Jesus Christ whom they claim to have been born on the same date in the early 31AD in one of the then most powerful European empires, the Roman Empire. These people believe that Jesus came into the world to save mankind.
ably, nearly every country has a unique way of celebrating Christmas - customs, rituals, and traditions differ greatly the world over as people incorporate their own culture in the occasion. But, all in all, it is still identified with gift-giving, Christmas tree, music and the
Christmas time brings you to a totally different world getting you from that circle and whirling into a world of wonders and fairy discoveries. Looking at the turmoil of Christmas time – people hurrying, buying presents, decorating their homes – you get the mood of the holiday, some burning wish that something unexpected and good can happen.
Their bond and commitment to each other was so deep that their lives intertwined as they shared memorable activities, especially during Christmas time. The story started with a scene in the kitchen, as Buddy was having breakfast and Sook was excitedly