cr-RENTERS

[vscid]

Unless they are used as strictly temporary measures, rent-control ordinances ( municipal regulations placing limits on rent increases) have several negative effects for renters. One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters occurs over the long run, but the advantage of smaller rent increases occurs immediately. In many municipalities, specifically in all those where tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short â€"term gain that guides those tenants in the exercise of that power.

If the statements above are true, which one of the following can be properly inferred from them?

(A) It is impossible for landlords to raise rents when rent controls are in effect.
(B) In many municipalities rent-control ordinances are repealed as soon as shortages of rental unites arise.
(C) The only negative effect of tent control for renters is that it brings about a shortage of rental units.
(D) In many municipalities there is now, or eventually will be, a shortage of rental units.
(E) In the long term, a shortage of rental units will raise rents substantially.

source: testmagic

Report this post

[JonathanSchneider]

Do you have a particular question about this? When posting to this forum, please indicate what your specific question/concern is. Thanks!