In cities with rent controls, the actual rents paid can be higher than the legal maximum. One explanation for this is
A) rent control laws are so complicated that landlords and tenants may not be aware of what the legal price is.
B) landlords are allowed to charge more than the legal maximum on some apartments so long as they charge less on others.
C) the legal penalty landlords face for charging more than the legal maximum rent is less than the revenue earned by charging their tenants more than the maximum rent.
D) because there is a shortage of apartments, tenants often are willing to pay rents higher than the law allows.
D
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By offering less generous unemployment insurance programs, the United States can expect
A) citizens to pay more in taxes than citizens pay in Europe. B) longer periods of unemployment for their workers. C) workers to be slow in gaining new skills in response to fluctuations in the labor market. D) shorter periods of unemployment for their workers.
Ceteris paribus, if the Fed reduces the discount rate, then:
A. The incentive to borrow funds increases. B. Required reserves decrease. C. The money multiplier increases. D. Total reserves decrease.
Velocity is
a. Y/(M x P) and increases if dollars are exchanged less frequently. b. Y/(M x P) and increases if dollars are exchanged more frequently. c. (P x Y)/M and increases if dollars are exchanged less frequently. d. (P x Y)/M and increases if dollars are exchanged more frequently.
An inferior good is characterized by:
A. a positive income elasticity of demand. B. a negative income elasticity of demand. C. a negative price elasticity of demand. D. a positive price elasticity of demand.