One Economist Has Argued That Rent Control Is "The Best

question 119

Multiple Choice

One economist has argued that rent control is "the best way to destroy a city,other than bombing." Why would an economist say this?

• A)He fears that low rents will cause low-income people to move into the city,reducing the quality of life for other people.
• B)He fears that rent control will benefit landlords at the expense of tenants,increasing inequality in the city.
• C)He fears that rent controls will cause a construction boom,which will make the city crowded and more polluted.
• D)He fears that rent control will eliminate the incentive to maintain buildings,leading to a deterioration of the city.

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Definitions:

Interest Rate

The cost of borrowing money, usually expressed as a percentage of the total amount loaned.

Investment Spending

Expenditures on new physical assets like machinery, buildings, or infrastructure, intended to increase productive capacity.

Planned Investment

Investments that are part of a predetermined plan, often by governments or large organizations, focusing on achieving long-term objectives or economic development.

Aggregate Demand Curve

A curve showing the total demand for goods and services within an economy at various price levels.