Government Policies Such as Price Controls, Rent Controls, and Quantity

question 110

Multiple Choice

Government policies such as price controls, rent controls, and quantity restrictions have the effect of

• A) promoting the attainment of an unhindered market equilibrium.
• B) allowing quantity demanded to adjust to equality with aggregate supply.
• C) creating excess quantities demanded or excess quantities supplied.
• D) pushing prices to market clearing levels more rapidly than private market forces.

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Definitions:

Stock Exchanges

Marketplaces where securities, such as stocks and bonds, are bought and sold by participants.