List three examples of government actions that promote the free market

Encourage private ownership Profit motives and promote competition and monopoly regulate companies sell food and regulate pollution

1) Reduction of taxes

2) Incentives to foreign investments

3) Reduction of tariff to imported goods

Explanation:

1) With a reduction of taxes is more likely to more companies to be created promoving the competition needed for free economy development. Also, the companies will have more capacity of investments improving their process and production what eventually lead to more options for the consumers.

2) More money driving to the economy more business and competition will surge. Through incentives to foreigners to invest in the local economy, the government can reach the desired state of economic growth that reinforce the free market process.

3) Free markets mean also free competition, this implied local but also international competition, allowing free international trade contribute to the process of free markets.

Branches of government, including Congress and such entities as the Federal Reserve System, attempt to control the extremes of boom and bust, and of inflation and depression, by adjusting tax rates, the money supply and the use of credit. They can also affect the economy by changing the amount of public spending by the government itself. Normally, the aim is a balanced federal budget. But since 1960 a deficit has prevailed in the federal accounts in every year except 1969, and it has generally widened, reaching a high of some $200 thousand-million in the mid-1980s, before dropping back again.

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