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Author Question: Disinflation refers to A) a rapid increase in the price level. B) a decrease in the price level. ... (Read 126 times)

rachel9

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on: Jun 29, 2018
Disinflation refers to
 
  A) a rapid increase in the price level. B) a decrease in the price level.
  C) a reduction in the rate of inflation. D) an increase in the rate of inflation.

Question 2

Explain how both renters and landlords could be either winners or losers with the imposition of rent control.
 
  What will be an ideal response?


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catron30

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

With rent control, those renters who are able to obtain a rent-controlled apartment will win by paying a rent which is below the equilibrium rent. Those renters who are not able to obtain an apartment due to the shortage created by rent control will lose. Landlords who abide by the rent control will lose by receiving less than the equilibrium rent. Landlords who do not abide by the rent control can win by charging a rent that is higher than the controlled rent.


rachel9

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Reply 2 on: Jun 29, 2018
Gracias!

Liddy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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