How Does Rent Control Tend to Cause Persistent Imbalances in the Market

question 148

Multiple Choice

How does rent control tend to cause persistent imbalances in the market for housing?

• A)Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
• B)Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
• C)Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
• D)Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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Definitions:

Money Market Securities

These are short-term debt instruments, typically with maturities of less than one year, used by governments, financial institutions, and corporations to finance their short-term cash needs.

Net Asset Value

The value of an entity's assets minus the value of its liabilities, often used in the context of mutual and exchange-traded funds.

Dividend Income Distributions

Payments made by a corporation to its shareholders, often derived from the company's earnings, representing a share of the profits.

Capital Gains Distributions

Earnings paid to shareholders from the fund's sale of securities, representing a portion of the profits realized by the investment.