Which Statement(s) Is TRUE

question 75

Multiple Choice

Which statement(s) is TRUE?
I. In the long run, rent-control laws create incentives to turn apartments into hotels or parking garages.
II. Apartment owners are less likely to do routine maintenance when the government controls apartment rents.
III. Rent-controlled apartments are more likely to be allocated by discrimination than non-rent-controlled apartments.

• A) I, II, and III
• B) I and II
• C) I only
• D) II only

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Definitions:

Normal Balance

The side (debit or credit) on which entries increase an account's balance, based on the accounting equation.

Financial Statement

A written record that conveys the financial activities and conditions of a business or individual, typically including the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

This refers to the nature of employment or status of objects wherein 'permanent' indicates indefinite duration and 'temporary' indicates a fixed duration.

Normal Balance

Normal Balance is the side (debit or credit) where increases to the account are recorded, depending on the account type.