Questions: Which THREE of the following are effects of government regulation and taxation? A. both increase final costs to consumers B. both result in undue burdens on consumers C. both decrease the amount of money in circulation D. both are used to support the nation's priorities E. both impact how much companies are willing to invest in certain businesses

The answer is A, D, and E.

Government regulation and taxation can lead to increased costs for businesses, which are often passed on to consumers in the form of higher prices. For example, compliance with environmental regulations may require companies to invest in new technologies, and taxes on goods can directly increase their retail prices.

While regulations and taxes can impose burdens, they are not always "undue." Regulations often aim to protect consumers, workers, and the environment, while taxes fund public services. The perception of burden can vary depending on the context and effectiveness of these measures.

This statement is not entirely accurate. While taxes can reduce disposable income, government spending of tax revenue can reintroduce money into the economy. Regulations do not directly affect the money supply.

Regulations and taxes are tools for implementing government policy and supporting national priorities, such as public health, safety, and infrastructure development. For instance, taxes fund public services, and regulations can promote environmental sustainability.

Regulations and taxes can influence business investment decisions. High taxes or stringent regulations may deter investment in certain sectors, while incentives or favorable regulations can encourage investment. For example, tax credits for renewable energy can boost investment in that industry.