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explain the relationship between the real interest rate and private consumption spending .

explain the relationship between the real interest rate and private consumption spending .why might the relationship be stronger now than before deregulation of the Australia banking system in the early 1990s?and what is the primary reason the RBA seeks to target the inflation rate?

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Real interest rates determines the cost of borrowing money for private consumption. When interest rates are high, the cost of... View the full answer

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