Describe a scenario of a family leasing a rent-control apartment. In your description, show the various pros and cons of rent control.

What will be an ideal response?

Scenarios will vary, but should show a thorough understanding of the pros and cons of rent control. For example, a family with a husband, wife, and four kids are tenants in a rent-control apartment. The husband works full-time as a busboy in a restaurant, and the wife works part-time. The family considers themselves lucky because they can afford the rent despite their low income. In fact, they have lived in this apartment for 6 years and have no plans to move. However, the apartment is constantly in a state of disrepair. The landlord feels that because of the low rent, he can’t afford to make repairs. So the husband and wife do many of their own repairs. They also notice that the landlord appears to avoid renting to certain minority groups. Because of the low rents, he has many possible renters to choose from, so he can avoid people he may have bias against.

Economics

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If the price level falls, the

A) quantity of money demanded decreases. B) quantity of money demanded increases. C) demand for money does not change and the quantity of money demanded does not change. D) demand for money increases. E) demand for money decreases.

Economics

Which of the following increases aggregate demand and shifts the AD curve rightward?

A) a fall in the price level B) an increase in the quantity of money and a resulting fall in the interest rate C) predictions of a recession that lead to expectations of lower future income D) an increase in the exchange rate that makes imports less expensive

Economics