In response to the COVID-19 pandemic the reserve bank reduced the cash rate from 0.25 per cent in March 2020 to 0.1 per cent in November in November 2020. Explain using the Money-Demand/Money- Supply framework explain the following: į. How the new equilibrium cash rate was reached. ii. What impact lowering the cash rate would have on consumption and investment. iii If inflation were to rise significantly how could the RBA intervene.