the govermen decrease spending by $12 billion and assuming marginal propensity to Consume of 0.6 yhen GDP

A. GDP will increase bu $7.2 billion

B. The GDP will fall by $30 billion

C. The GDP will fall by $7.2 billion

D. The GDP will increase by $30 billion

In 2018 the inflation in Venezuela reached 2000%/year and is expected to rise up to 13,000%/ year. People are waiting in the line to cash their meager salary and starting the use barterand exchange one product for another instead of using their currency. Hyperinflation

1. Make the use of money more practical

2. Discourge the use of barter

3. Void the store the value function of money

4. Promotes money as a unit of account.

the federal reserve strategy is to

a. control interest rates to keeps inflation at 0%

b. borrow money fro the governmentto makes loans to banks to promote employment

c. control short term interest rate to influence longer terms rates and economic activity and employment

d. control its budget to influence consumer spending and increase economic growth