The Existence of Long Term Leases Agreements in Rental Markets

Multiple Choice

The existence of long term leases agreements in rental markets:

A) benefits landlords by keeping occupancy rates high and harms tenants by reducing their mobility.
B) harms landlords and benefits tenants by preventing landlords from raising the rent each month.
C) creates an informational advantage for landlords.
D) solves a commitment problem that is inherent in markets with imperfect information.