Economic regulations help fulfill Adam Smith’s idea of a laissez faire economy. true false One of the main reasons for increasing economic regulations in the United States is the increasing population. true false Increasing the discount rate in order to decrease the money supply is an example of fiscal policy. true false In a recession, fiscal policy calls for the government to decrease taxes and increase spending. true false Monetary policy alone is the most effective economic policy. true false When the Federal Reserve sells government securities, it results in a decrease in the money supply. true false Which of the following is a function of our current banking system? lending money acting as a medium of exchange regulating the money supply determining the value of money The purpose of economic regulations in the United States is to undermine the free-market economy limit the individual freedoms of all Americans promote economic growth, stability, and equity control population growth and birth rates The Department of Defense is an important part of the economy because it provides consumers and businesses with protection and a sense of security when making economic decisions it protects human health and the environment so consumers and businesses will be safe it develops military strategies during times of war it provides banking insurance so depositors’ money is protected when it is placed in bank accounts The Environmental Protection Agency (EPA) impacts the economy by developing and enforcing regulations that protect human health and the environment providing consumers and businesses with protection and a sense of security when making economic decisions providing banking insurance so depositors’ money is protected when it is placed in bank accounts creating and enforcing truth-in-advertising laws to protect consumers Crazy Eight is very excited because he is opening a new business. He purchased a building, equipment, a license, and computers, and he remodeled his building. He also was able to acquire a patent for his new idea. He invested all his savings in the new business and he is hoping his new business will take off. Crazy Eight was able to open this new business because he is leasing the building from the government under an agreement he will manufacture what the government orders the government guarantees he is able to own property and ideas he is a good businessman and will succeed he is able to bypass all the government regulations in order to open an illegal business John Furry purchased a vacation package from a telephone solicitor. The person asked John for a two-hundred-dollar deposit via credit card in order to reserve his package. John gave the solicitor his credit card number, but he never received the vacation. The agency responsible for investigating this fraud is the Environmental Protection Agency the Consumer Product Safety Commission the Food and Dr.