Other things being equal, an increase in the price of ethanol will
A. increase the use of corn in ethanol production and in HFCS (another product produced from corn).
B. increase the use of corn in all corn uses.
C. increase the use of corn in ethanol production but decrease the use of corn in feed.
D. increase the use of corn in HFCS.
Ans: C. increase the use of corn in ethanol production but decrease the use of corn in feed.
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Refer to the graph shown. From 1938 to 1943 the Federal deficit rose from $1.0 billion to $53.8 billion due to increased defense spending. The effect of this on the AD curve can be shown by a movement from:
A. A to B. B. A to C. C. A to D. D. B to A.
In the balance of payments of the United States, inflows of foreign currencies to the United States are recorded as:
A. a positive entry. B. a current account entry. C. a negative entry. D. net investment income.
If the Fed wants to fight inflation, it will ________ the federal funds rate in order to ________
A) raise; decrease aggregate supply B) raise; increase aggregate supply C) raise; decrease aggregate demand D) lower; decrease aggregate demand E) lower; increase aggregate supply
When there is a shortage in the market, the quantity sold is
A) greater than the quantity supplied. B) equal to the quantity supplied. C) less than the quantity supplied. D) less than the quantity bought.