Government assistance to farmers, which seeks to maintain a target price by buying surplus output, results in
A) higher prices and less food for consumers.
B) higher prices and more food for consumers.
C) lower prices and less food for consumers.
D) lower prices and more food for consumers.
A
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"As interest rates rise, people save more money." A graph displaying this relationship would show
A) an inverse relationship. B) a positive relationship. C) a cross-section graph. D) a positive then a negative relationship.
The main policy goal for a country according to the mercantilists is
A) to create a one-time deficit in the balance of payments. B) to create a continuing deficit in the balance of payments. C) to create a one-time surplus in the balance of payments. D) to create a continuing surplus in the balance of payments. E) to create specie overflows.
Why do economists insist on emphasizing the difference between money and income? Why is this difference important in macroeconomics?
Prolonged periods of monetary contraction, as was the case during the Great Depression, will likely result in
a. an increase in real output and employment. b. an increase in loanable funds and upward pressure on the rate of inflation. c. a decrease in output and downward pressure on prices. d. a decrease in unemployment and upward pressure on prices.