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8 January, 15:10

Identify the two examples that show how government regulations inhibit (makes it more difficult/stops) production of goods and services from reaching the market?

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  1. 8 January, 15:37
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    By increasing Tax which is fiscal policy

    And monetary policy which Affect the interest rate and money in circulation

    Explanation:

    Government regulations inhibit (makes it more difficult/stops) production of goods and services from reaching the market by increasing government tax which can discourage companies from coming into the country or stop companies that were producing the products before from functioning because of the tax. This is know as the fiscal policy which is control by the congress and the monetary policy which is control by the Fderals reserve and Central Bank.

    In the monetary policy, if there is low money in circulation, it will have great Effect on business. Monetary policy also the Federal reserve popular called "Fed" also controls the rate of Interest in the market
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