Under Rent Control, Tenants Can Expect

question 30

Multiple Choice

Under rent control, tenants can expect

• A) lower rent and higher quality housing.
• B) lower rent and lower quality housing.
• C) higher rent and a shortage of rental housing.
• D) higher rent and a surplus of rental housing.

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Definitions:

Required Rate

The minimum percentage return that an investor expects to achieve from an investment.

Average Accounting Return

A measure of the profitability of an investment, calculated as the average net income divided by the average book value of the investment.

Straight-line Depreciation

A method of allocating the cost of a tangible fixed asset over its useful life in equal annual installments.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.