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Why is a fractional reserve banking system necessary? A. To prevent the money supply from growing too quickly B. To provide the regulation of the global economy C. To enable the government to charge lower taxes D. To enable banks to loan out money to make a profit

Why do government regulations lead to higher prices for consumers? A. Taxes must be raised to enforce these regulations. B. They limit the input of natural resources. C. Producers pass along the costs of compliance. D. Wages reductions decrease purchasing power.

What does the enforcement of antitrust laws do? A. Leads to budget surpluses B. Speeds up the flow of capital and wages C. Curtails venture capital investment D. Requires issuing bonds

Politicians approve pork barrel spending for what purpose? A. To increase wages B. To win political support C. To subsidize production D. To restrict international trade