Economics 9708 · AS & A Level · 7.7

7.7 — practice question

What is one argument in favour of a government policy that permits companies to acquire other companies?

  • AIt allows firms to borrow from the banking system.
  • BIt encourages companies to act to promote productive efficiency.
  • CIt ensures wage rates will rise.
  • DIt provides income and employment for investment bankers.

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