Question

Which of these inspires confidence increases purchases and speeds up the flow of investment and wages in the circular flow of the free market system

Answer 1

Question options:

A. antitrust laws B. the provision of public goods C. consumer-protection regulations D. fractional reserve banking.

Answer:

consumer-protection regulations

Explanation:

Consumer protection regulations are regulations that protect the public or general consumers against consumption of unsafe goods. These regulations hold manufacturers accountable for production of goods that may be harmful to consumers. The Consumer Protection Act of 1987 serves the purpose of penalizing erring manufacturers so that consumers are compensated for goods that brought damage to life or property. This therefore inspires great confidence in purchase of goods and investment as consumers are backed by the law.