If a firm is a natural monopoly, society will benefit if it is broken into several small companies.

The Fed:

a. has little control over the money supply. b. serves as the central bank for the United States. c. often uses a mix of lower taxes in its fiscal policy. d. ensures commercial bank profitability.

Which of the following did not contribute to the law of diminishing control?

A. Regulations covered fewer financial instruments B. New financial institutions and instruments C. New monetary policy tools D. Political pressure to reduce regulations