Rent controls can cause distortions in resource allocation by

a. causing too many resources to be devoted to housing
b. creating a surplus of housing
c. creating incentives toward home ownership rather than renting
d. causing too few resources to be devoted to housing
e. decreasing the demand for rental units

D

Economics

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The money that households might hold either as money or in interest-bearing assets, depending on the interest rate, is called the:

a. precautionary demand. b. transactions demand. c. speculative demand. d. liquidity motive. e. investment motive.

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Cyclical unemployment depends on a country's historical and cultural heritage

a. True b. False Indicate whether the statement is true or false

Economics