Rent controls create distortions in the housing market by:
a. increasing rents received by landlords
b. raising property values.
c. encouraging landlords to overspend for maintenance.
d. discouraging new housing construction.
e. increasing the supply of housing in the long run.
d
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________ is generated from taxing profits earned by firms
A) Excise tax B) Sales tax C) Corporate income tax D) Payroll tax
Most observers nowadays see monetary policy as much less important than fiscal policy
a. True b. False Indicate whether the statement is true or false
If the dollar depreciates relative to other currencies, which of the following is true?
a. It takes more foreign currency to buy a dollar. b. It takes more dollars to buy a foreign currency. c. U.S. exports will decrease. d. Foreign purchases of U.S. goods will decrease.
Why is it important that the central bank be independent, or insulated from changes in political power?
What will be an ideal response?