Which of the following is true of regulation? 1 Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems

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Which of the following is true of regulation?

1 Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.

2 Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises.

3 Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors is unpopular.

4 Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.