Suppose the Government Is Considering a Program to Give Housing

Multiple Choice

Suppose the government is considering a program to give housing vouchers to poor people. Assuming the value of the voucher is greater than the amount currently being spent on housing per month by poor people, which of the following must be true?

A) The housing voucher will necessarily cause more units of housing to be consumed by poor people, whereas an unrestricted cash subsidy with the same dollar value would not.
B) The housing voucher will lead to fewer apartments for poor people.
C) A subsidy is always preferable, no matter what the policy goal as it allows for freedom of choice.
D) Voucher systems have no impact on the housing market.