Author Question: Government actions to compel more competition in an industry A) always entail costs, which must ... (Read 49 times)

Coya19@aol.com · **on:** Jun 29, 2018

Government actions to compel more competition in an industry

A) always entail costs, which must be compared to any gains created by the policy.
B) always have the effect of lowering prices to consumers.
C) cannot benefit anyone if they result in greater inefficiency.
D) will result in lower prices but cannot bring about a larger output.
E) will not succeed because competition, like morality, cannot be legislated.

Question 2

When the Fed buys bonds on a mass scale

A) bonds go to the Fed, and dollars go into the banking system, so the money supply tends to rise.
B) bonds go to the Fed, and dollars exit the banking system, so the money supply tends to fall.
C) banks have more bonds and fewer dollars, so the money supply tends to fall.
D) banks have more bonds and fewer dollars, so the money supply tends to rise.