What Are Some Reasons Why Markets Are Not Free and Unregulated

question 1

Multiple Choice

What are some reasons why markets are not free and unregulated?

• A) bad incentives
• B) some people ignore ethical values in making market decisions
• C) politicians' election agendas
• D) All of the answers are correct.

---

Definitions:

Tax Rates

The percentages at which income, property, and sales are taxed by governments, varying for different levels of income or value.

Market For Loanable Funds

The market in which those who want to save supply funds and those who want to borrow to invest demand funds.

Nominal Interest Rate

The rate of interest charged on a loan or paid on an investment without adjustment for inflation.

Loanable Funds

The funds available in the financial markets for borrowing, which come from people's savings and the money printed by the government.