Refer to the diagram below, which shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S3?
A. A decrease in the cost of equipment used in corn farming
B. An increase in the price of soybeans
C. A decrease in the price of corn
D. An increase in the number of acres of farmland allocated to corn
Answer: B
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If the reserve ratio is 10 percent, the money multiplier is equal to 10
Indicate whether the statement is true or false
Why might a nation that has an absolute advantage in the production of a good or a service still not be able to find a trading partner?
What will be an ideal response?
The IS curve has a positive slope because a(n) __________ in the interest rate leads to a(n) __________ in desired investment and this leads to a decrease in GDP
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
An increase in the expected profitability of investment will cause
A) IS to shift right. B) IS to shift left. C) MP to shift upward. D) MP to shift downward.