The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to offer controlled rent but force the tenants to rent furniture from them. This is an example of

In the figure above, if the government provides a subsidy to colleges of $6,000 per student per year, how many students will be accepted?

A) 8 million per year B) 12 million per year C) 10 million per year D) 16 million per year

The aggregate demand curve shifts to the left when the Fed:

A. increases its target inflation rate, reflected by a downward shift in the Fed's policy reaction function. B. decreases its target inflation rate, reflected by an upward shift in the Fed's policy reaction function. C. decreases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function. D. increases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function.