Question

Why were many conservatives in favor of government deregulation?

They thought the excessive number of regulations hurt businesses.

They wanted to increase tax rates and save money by deregulating.

They thought deregulation would help reduce inflation.

They believed that government had no authority to regulate any aspect of business or industry.

Answer 1

The correct answer is: "They thought the excessive number of regulations hurt businesses".

Conservatives supported laissez-faire economic policies.

Laissez-faire economic policies claim for no goverment intervention in the economy. Its supporters believe that the free interactions of economic agents (households, firms and public sector) in the markets, generate the most efficient outcomes. When goverments intervene to correct a market failure, they distort the natural adjustment mechanisms of the markets, reaching a worse scenario than if the market has corrected itself alone.

Answer 2

The correct answer to the question that is being presented above would be the first statement. The first choice which is 'They thought the excessive number of regulations hurt businesses.' was the reason why conservatives favored government regulation.