Question

Select three effects of increased government regulation:​

Answer 1

Answer:

Option A , B, D

Explanation:

In simple words, when the government increase the regulation on markets the interest for lending and borrowing also decreases to make sure that the poor ones could also use the money. Thus, resulting in decrease in housing prices.

The government will also regulate the prices of commodities so that everyone can enjoy the utilities of commodities and hence leading to lower corporate profits.

However, to fund the above two operations the government will need to have finance which will be done by increasing the taxes.