4. Discuss the relationship between Australia’s Cash rates and the Federal Reserve Fund’s rates in USA. Do movements in the Federal Reserve Fund’s rates net drive movements in the Cash rates? Illustrate your discussion with summary statistics and pairwise graphs of the Cash rates and the Federal Reserve Fund’s rates.
5. Based on your summary statistics, graphs and analysis and discussion above, write a short prediction of the macroeconomic outlook of Australia. Is Australia likely to experience a recession or expansion soon?
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