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If a City Passes Laws Limiting Rents on Apartments but Promises

Question 75

Multiple Choice

If a city passes laws limiting rents on apartments but promises to exempt buildings not yet built:


A) construction of new buildings will not be discouraged.
B) construction of new buildings may be discouraged.
C) builders will not expect the city to renege on its promise.
D) the city will have no incentive to renege on its promise.

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