One economist has argued that rent control is "the best way to destroy a city, other than bombing." Why would an economist say this?
a. He fears that low rents will cause low-income people to move into the city, reducing the quality of life for other people.
b. He fears that rent control will benefit landlords at the expense of tenants, increasing inequality in the city.
c. He fears that rent controls will cause a construction boom, which will make the city crowded and more polluted.
d. He fears that rent control will eliminate the incentive to maintain buildings, leading to a deterioration of the city.
d
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Everything else equal, an appreciation of the dollar will:
A) cause the net exports of the U.S. to increase. B) cause the U.S. GDP to fall. C) not affect U.S. GDP. D) cause the U.S. GDP to increase.
What effect does an increase in the MPC have on the slope of the AE curve?
What will be an ideal response?
The nominal interest rate plus the inflation rate equals the real interest rate
Indicate whether the statement is true or false
The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of
A) discretionary monetary policy. B) the discretionary multiplier effect. C) discretionary fiscal policy. D) automatic stabilizers.