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Economics (AS & A Level) · May / June 2021 · Paper 13 · Question 17

9708Methods and effects of government intervention in markets

A government decides to build additional public sector housing to be rented to people receiving low incomes. What is most likely to fall as a result of this increase in public sector housing?

  1. Aemployment in the construction industry
  2. Bland prices in towns and cities
  3. Crents of houses in the private sector
  4. Dtotal government spending

As printed in the paper

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Correct answer: C. rents of houses in the private sector

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