How Does the Approach Used by Most Economists to Analyze

question 7

Essay

How does the approach used by most economists to analyze regulations differ from that typically used by politicians? Explain.

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Definitions:

APR

Annual Percentage Rate, a measure of the cost of credit, expressed as a yearly interest rate including fees and charges.

Dodd-Frank Wall Street Reform

A comprehensive package of financial regulations passed in 2010 aimed at preventing the recurrence of the financial crisis, enhancing consumer protection, and ensuring financial stability.

Consumer Protection Act

Legislation designed to protect the rights and interests of consumers by ensuring fair trade, accurate information, and the right to complain and get a redress.

Consumer Financial Protection Bureau

A U.S. government agency tasked with ensuring that consumers are treated fairly by banks, lenders, and other financial institutions.