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What is an economic function of the U.S. government in the market economy?

O to purchase companies in other countries
O to keep all the money it receives
O to ensure stability in the market
Oto prevent competition between businesses.

User Smts
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1 Answer

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Final answer:

The U.S. government ensures market stability by fulfilling its roles as regulator, protector, provider, consumer, and promoter within a mixed economy, balancing its involvement to reflect the evolving needs of society.

Step-by-step explanation:

One economic function of the U.S. government in the market economy is to ensure stability in the market. This is achieved through various roles such as being a regulator, protector, provider, consumer, and promoter of national goals. As a regulator, it is the government's duty to oversee businesses and ensure fair competition. As a protector, the government enforces laws to prevent consumer abuse by businesses.

It serves as a provider by delivering goods and services like national defense and public education, and as a consumer when it purchases from the private sector to support its operations. Lastly, by promoting economic goals such as stable prices, full employment, and growth, the government seeks to maintain a balanced approach to its involvement in the economy, fostering a mixed economy that reflects the changing needs and expectations of its citizens.

User CarlosSR
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