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Is it possible for a government's solution to a market failure to worsen the failure?

Answer:
Yes. If the government does not alleviate the cause of the failure, it will likely absorb economic resources and causes inefficiences/deadweight social loss which will only make things worse (aka - more costly). Examples: the Great Depression; Germany hyperinflation of the 1920s.
First answer by M200220232. Last edit by M200220232. Contributor trust: 47 [recommend contributor recommended]. Question popularity: 1 [recommend question].

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