Which of the following is a consequence of rent controls established to keep housing affordable for the poor?
A. Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled.
B. Less rental housing is available as prospective landlords find it unprofitable to rent at restricted prices.
C. The quality of rental housing declines as landlords lack the funds and incentive to maintain properties.
D. All of these are consequences of rent controls.
Answer: D
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A) unemployment falls immediately. B) inflation begins to fall. C) unemployment continues to rise. D) investment begins to fall.
Assume the Treasury borrows $5 billion from the non-bank public and spends it
The effect on bank reserves is that they will __________ by $5 billion when the Treasury borrows and then bank reserves will __________ by $5 billion when the Treasury spends the money. A) rise; fall B) fall; rise C) rise; rise D) fall; fall
Describe a tit-for-tat strategy.
What will be an ideal response?
One of the following projects has two IRRs. Which project is it?
