Which of the Following Is an Example of "Negative Feedback

question 19

Multiple Choice

Which of the following is an example of "negative feedback" in the real estate system?

• A) Since the stock of built space cannot readily shrink, rents will fall when demand falls.
• B) Lenders make money by issuing loans, so they tend to keep the capital flowing to developers even during down markets.
• C) Real estate markets exhibit inertia, so market participants rationally extrapolate past rent trends into the future.
• D) Growth in space usage demand stimulates increased rents or improved prospects for future rents, which increases the present value of real estate assets, which improves the profitability of new development projects.

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Definitions:

Emotionality

The observable behaviors and physiological responses associated with emotions.

Behavior

The actions or reactions of an individual, usually in relation to the environment.

New York Longitudinal Study

A landmark research project that began in the 1950s, focusing on the temperament of infants and how it predicts their future development.

Temperamental Pattern

Refers to the foundational aspects of an individual's personality, such as their mood, activity level, and emotional reactivity, that are believed to be biologically based and remain relatively stable over time.