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Government Policies Such as Price Controls, Rent Controls, and Quantity

Question 110

Multiple Choice

Government policies such as price controls, rent controls, and quantity restrictions have the effect of


A) promoting the attainment of an unhindered market equilibrium.
B) allowing quantity demanded to adjust to equality with aggregate supply.
C) creating excess quantities demanded or excess quantities supplied.
D) pushing prices to market clearing levels more rapidly than private market forces.

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