Answer: B
The government cannot control interest rates and that is the reason is why the government cannot completely control the business cycle. This is so because interest rate controls the rate of consumer spending, borrowing and spending. Say interest is low, people will borrow more and spend more and this will have an impact in the rate of employment. Hence, in short if the government cannot control interest rate, everything depending on it, the economic cycle cannot be determined.
The right answer for the question that is being asked and shown above is that: "Mr Chavez did not increase his assets or his net worth."
<span>Mr Chavez has assets of S250.000 and liabilities of $18 000 Hedecides to finance the entire amount of tho purchase of a carvalued at S20000. That statement is true.</span>
