Which of the Following Is an Example of "Negative Feedback

Multiple Choice

Which of the following is an example of "negative feedback" in the real estate system?

A) Since the stock of built space cannot readily shrink, rents will fall when demand falls.
B) Lenders make money by issuing loans, so they tend to keep the capital flowing to developers even during down markets.
C) Real estate markets exhibit inertia, so market participants rationally extrapolate past rent trends into the future.
D) Growth in space usage demand stimulates increased rents or improved prospects for future rents, which increases the present value of real estate assets, which improves the profitability of new development projects.