Rent Control Applies to About Two-Thirds of the Private Rental

question 158

Multiple Choice

Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that the below-equilibrium prices established by rent controls would

• A) create a surplus of rental housing.
• B) promote a rapid increase in the future supply of housing.
• C) result in poor service and quality deterioration of many rental units.
• D) lead to a reduction in housing discrimination against minorities.

---

Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving predetermined interest payments.

Equity Securities

Financial instruments indicating ownership in a corporation, such as stocks, and often yielding dividends.

Similarities

Aspects or characteristics that are alike between two or more entities or objects.

Consolidated Financial Statements

Financial statements that show the combined financial position and results of operations of a parent company and its subsidiaries.