Economists who think the capture theory explains regulatory behavior will support their claims by noting that
A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers.
B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups.
C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms.
D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.
D
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When the Fed buys government bonds on the open market from commercial banks, the
a. assets of these banks fall b. assets of the Fed falls c. assets of the banks rise d. liabilities of the bank rise e. liabilities of the bank fall
Most monetarists would say that:
A. the MV = PQ equation provides a better understanding of the macroeconomy than does the C a + I g + X n + G = GDP equation. B. most changes in the price level are explainable by changes in the level of real output. C. the velocity of money is quite unstable. D. all of these are true.