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Economic management — Question 10

QCAA 2025, Paper 1 · 1 mark

Q10 · 2025 · External assessmentUnclassified1 mark

QUESTION 10

Data for a hypothetical Australian scenario is shown.

Economics question figure

Ceteris paribus, what are the appropriate policy responses?

(A) increasing the cash rate and increasing the budget deficit

(B) increasing the cash rate and increasing the budget surplus

(C) maintaining the cash rate and increasing the budget surplus

(D) maintaining the cash rate and making no change to the budget outcome

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