Multiple Choice
Which of the following is not a likely effect of rent controls?
A) an increase in the supply of rental housing in the short run
B) the development of underground markets
C) the movement of resources away from the rental housing industry
D) a shortage of rental units
E) an increased frequency of subletting, as tenants try to maintain benefits from apartments in which they no longer reside
Correct Answer:
Verified
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A)both cause shortages
B)both