Author Question: If net exports are positive, A) capital inflows must be greater than capital outflows. B) net ... (Read 104 times)

jlmhmf · **on:** Jun 29, 2018

If net exports are positive,

A) capital inflows must be greater than capital outflows.
B) net foreign investment is negative.
C) net foreign investment is also positive.
D) Both A and B are correct.

Question 2

Rent control is typically imposed ostensibly for the purpose of helping the poor. Why might you be able to argue that few poor people will actually be the beneficiaries of such controls?

What will be an ideal response?

Joy Chen · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

Rent control certainly does have the effect of keeping a ceiling on rent. However, it only works in the prescribed area. As poor people begin to look for housing in the regulated areas they eventually come up empty handed as they discover that there is a shortage of such housing. They must then look for housing in the unregulated area. But by now many of those who couldn't find housing in the regulated area will be bidding up the rents in the unregulated areas of the city.