A rent control law, where tenants pay below-market rents, is a market restriction that may induce a decrease in the supply of rented apartments
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
According to the substitution effect, a drop in price increases real income (purchasing power), and if the good is normal, consumers will respond by buying more of the good in question. Thus a drop in price increases quantity demanded
Indicate whether the statement is true or false
In the Keynesian analysis of changes from one Real GDP level to another, which of the following plays a critical role?
A) changes in prices B) the relationship between optimum inventory levels and current inventory levels C) the long-run aggregate supply (LRAS) curve D) the relationship between total expenditures (TE) and the aggregate demand (AD) curve E) none of the above
If a dollar buys more rice in the China. than in the U.S., then
a. the real exchange rate is greater than 1; a profit might be made by buying rice in the U.S. and selling it in China. b. the real exchange rate is greater than 1; a profit might be made by buying rice in China. and selling it in the U.S. c. the real exchange rate is less than 1; a profit might be made by buying rice in the U.S. and selling it in China. d. the real exchange rate is less than 1; a profit might be made by buying rice in China and selling it in the U.S.
Bank managers seem to have to walk a tightrope between managing risk and earning a profit. Explain.
What will be an ideal response?