Some economic historians argue that the Interstate Commerce Commission (ICC) was the first case of the capture of a federal regulatory commission. What does this mean?
(a) The railroads used the ICC to solve the problems of cartel management.
(b) The users of the railroadspassengers and shippersinfluenced the ICC to keep railroad rates high and the quality of those services high.
(c) The railroads used the Commission to keep rates high and keep potential new railroads from entering the business.
(d) Foreign investors high jacked the ICC to protect their railroad investrments.
Question 2
If the Fed followed through on plans to be more open to and more quickly provide the public with information about monetary policy, then we would expect to see
a. the impact of the money supply on output would get stronger.
b. the Fed would not have any power over output in the future.
c. the impact of the money supply on output would get weaker.
d. information does not affect output.
