Which of the following is true of regulation?
A) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
B) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises.
C) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors will be unpopular.
D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.

Question

Quizplus · Accepted Answer

Regulatory agencies sometimes focus on immediate issues and may not fully consider the long-term secondary effects or potential future problems that could arise from their actions.

Which of the Following Is True of Regulation