Which of the following statements is FALSE?

A) In the American economy, government directly determines wages, prices, and profits.
B) Public policy in America has economic effects through regulations, tax advantages, subsidies and contracts, and international trade.
C) Even a minor change in government regulatory policy can cost industries a great deal or bring increased profits.
D) How the tax code is written determines whether people and producers pay a lot or a little of their incomes to the government.
E) B and D only

Ans: A) In the American economy, government directly determines wages, prices, and profits.