Examine regulatory capture in the railroad industry
Please provide the best answer for the statement.
In the 1887, in response to complaints that railroads were overcharging, the federal government established the Interstate Commerce Commission (ICC). The agency was in charge of regulating competition and prices. Soon railroad executives achieved regulatory capture by creating poles that fixed rates and profitable levels and reducing competition between railroads. The ICC justified these policies to the public by stating that competition had to be restricted to prevent large railroads from bankrupting the smaller ones, while the real motive was to reduce competition and increase profits.
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An exchange rate is the price of one country's currency in terms of another country's currency
Indicate whether the statement is true or false
All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since the early 2001 EXCEPT
A) increases in tax revenues. B) increases in payments for entitlements. C) increases in government spending. D) decreases in tax rates.