90 percent of home mortgage loans in the U.S. flow through two government-created corporations known as Fannie Mae and Freddie Mac, all of which are backed by the federal government. This arrangement violates a principle of capitalism. That principle is

Question

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The principle violated is "freedom from government interference," as the significant involvement of government-created corporations in the mortgage market indicates a level of government intervention in what is ideally a free market system under pure capitalism.

90 Percent of Home Mortgage Loans in the U