Improved technology has reduced the risk of grain loss during storage. If wheat farmers expect wheat prices to rise substantially in about four months from now, which of the following is likely to be true?
a. The current supply of wheat will decline, as farmers store wheat in anticipation of the higher prices.
b. The price of wheat breads is likely to decline in the future.
c. The expectation of higher prices in the future is unlikely to have any impact on current wheat supply.
d. The supply of wheat is likely to increase immediately.
a
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In 2009, just after taking office, President Obama approved an $800 billion stimulus package of tax cuts and increased government spending to combat the recession brought on by the financial crisis of 2007
Which group of economists most approved of President Obama's actions? A) Keynesian economists B) classical economists C) monetarists D) free market economists
If the bidders at a second-price auction have true values of $78, $72, $66, and $65, the item will sell for
a. $78 b. just under $78 c. $72 d. just over $72
Financial Systems
What will be an ideal response?
Which of the following might lead banks to hold more reserves?
A. An increase in the demand for loanable funds B. A decrease in the legal reserve requirement C. Fear that customers will want to withdraw most of their deposits D. Fear that businesses may decide to borrow less to fund investments