Which of the Explanations Below Best Describes Why a Government

question 123

Multiple Choice

Which of the explanations below best describes why a government might choose to impose binding rent controls?

• A)To prevent landlords from making excess profits and to protect low-income tenants from increases in the cost of housing.
• B)To prevent landlords from making excess profits and to reduce the long-term quantity of rental housing.
• C)To increase the demand for rental housing and to discourage private ownership of low-cost rental housing developments.
• D)To stabilize volatile rents,and thus to make the investment climate less uncertain for prospective investors in this sector.
• E)To stimulate employment in the construction industry through the increased demand for new houses.

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