In a free market for rental housing, the average rental rate

a. includes a large amount of economic rent.
b. includes zero economic rent.
c. is entirely economic rent, since rental housing is fixed in supply.
d. is about 10 percent economic rent.


b

Economics

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The portion of the money supply controlled by a central bank is

a. currency. b. deposits. c. reserves. d. the monetary base. e. the money multiplier.

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An increase in inflation will cause a reduction in which of the following?

A. the GDP deflator B. the nominal value of money C. the real value of money D. the Producer Price Index

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A. the construction of a new factory B. the purchase of government bonds C. the acquisition of capital goods D. the increase in planned inventories

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