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QUESTION

What type of monetary system operates in Australia? How does the private banking system affect the supply of money in Australia?

  1. What type of monetary system operates in Australia?
  2. How does the private banking system affect the supply of money in Australia?
  3. Define inflation. Why is a small amount of inflation considered good for economic activity? 
  4. What are the 2 major causes of inflation? To which type of inflation would the current falling price of oil most directly contribute?
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