Rent control continues to survive despite its flaws because
A. economists generally favor it.
B. landlords like its simplicity.
C. it creates economic growth in a city.
D. those displaced by the policy do not live in the community and cannot vote to end it.
Answer: D
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Use the following balance sheet for the First Federal Bank to answer the next question. AssetsLiabilities + Net WorthReserves$60,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If First Federal Bank can make no additional loans, then the monetary multiplier is
A. 5.00. B. 6.67. C. 3.00. D. 4.00.
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch.
If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then we would expect Tracy to get a payoff of ________ and Amy to get a payoff of ________.
A. 300; 200 B. 75; 150 C. 25; 225 D. 125; 125