Which of the explanations below best describes why a government might choose to impose binding rent controls?
A) To prevent landlords from making excess profits and to protect low-income tenants from increases in the cost of housing.
B) To prevent landlords from making excess profits and to reduce the long-term quantity of rental housing.
C) To increase the demand for rental housing and to discourage private ownership of low-cost rental housing developments.
D) To stabilize volatile rents,and thus to make the investment climate less uncertain for prospective investors in this sector.
E) To stimulate employment in the construction industry through the increased demand for new houses.
Correct Answer:
Verified
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