The loan rate is a low-interest rate at which farmers may borrow from the federal government on a short-term basis.
Answer the following statement true (T) or false (F)
False
The Commodity Credit Corporation lends money to farmers at fixed 'loan rates' that are implicit price floors. If the market price falls below the CCC loan rate, the government keeps the crop as full payment of the loan or pays farmers a 'loan deficiency payment.'
You might also like to view...
If C = $400, I = $100, G = $50, NX = $30, and NFP = $5, how much is GDP?
A) $580 B) $575 C) $585 D) $550
When money is used as a means to hold wealth, it serves as a:
A. double coincidence of wants. B. store of value. C. unit of account. D. medium of exchange.
Imposing a restrictive quota on imported plasma TVs will:
A. increase the price of the plasma TVs and decrease the quantity consumed. B. increase both the price of the plasma TVs and the quantity consumed. C. leave the price of the plasma TVs unchanged but decrease the quantity consumed. D. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports
Figure 16.4The pollution tax in Figure 16.4:
A. increases equilibrium output. B. decreases equilibrium price. C. gives the firm an incentive to switch to a cleaner production process. D. All of these