The long-run effects of rent controls are a good illustration of the principle that
a. society faces a short-run tradeoff between unemployment and inflation.
b. the cost of something is what you give up to get it.
c. people respond to incentives.
d. government can sometimes improve on market outcomes.
c
Economics
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Factors supplying and absorbing bank reserves constitute the
A) Federal Reserve credit equation. B) bank reserve equation. C) equation of exchange. D) money market.
Economics
Sylvia allocates her monthly income between Food and Housing. Her budget share spent on food in a given month is always 30%, and for Sylvia, food is a "necessity" (income elasticity between zero and one)
Derive the maximum and minimum values for the income elasticity of demand for housing.
Economics