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25 October, 01:08

Which of the following is a reason the government can't completely control the business cycle?

A. Unemployment is unpredictable.

B. The government can't control interest rates.

C. It's difficult to accurately predict the economic future.

D. Government has no control over consumer spending.

I really can't seem to find the answer in m textbook.

Also this is an Economics question.

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Answers (2)
  1. 25 October, 01:47
    0
    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.
  2. 25 October, 02:17
    0
    B the government cant control interest rates
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