A subsidy to wheat farmers will
A) increase the quantity of wheat demanded.
B) decrease the quantity of wheat supplied.
C) increase the supply of wheat.
D) leave both the supply and demand of wheat unchanged.
Answer: C
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Which of the following statements is CORRECT?
A) When demand increases, both the price and the quantity increase. B) When demand decreases, the price rises and the quantity decreases. C) When supply increases, the quantity decreases and the price rises. D) When supply decreases, both the price and the quantity decrease.
Present and explain the Fundamental Equation of the Monetary Approach
What will be an ideal response?
Changes in the GDP deflator reflect
a. only changes in prices. b. only changes in the amounts being produced. c. both changes in prices and changes in the amounts being produced. d. neither changes in prices nor changes in the amounts being produced.
If the nominal exchange rate between the American dollar and the Canadian dollar is 0.89 Canadian dollars per American dollar, how many American dollars are required to buy a product that costs 2.5 Canadian dollars?
A) $1.32 B) $2.23 C) $2.75 D) $2.81