Sugarcane can be used for producing both sugar and ethanol. New regulations in certain countries now allow a higher level of ethanol in gasoline. An economist would expect sugarcane prices to ____, and quantity sold to ____
a. rise; rise.
b. fall; fall.
c. rise; fall.
d. fall; remain the same.
a
You might also like to view...
Which of the following is true of sub-Saharan Africa?
a. The poverty rate in the region is low. b. Most of the sub-Saharan African countries rank among the freest economies in the world. c. The poverty rate in sub-Saharan Africa is the highest of any region in the world, and the reduction in the rate during the past quarter of a century has been modest. d. The poverty rate in sub-Saharan Africa is the lowest of any region in the world, and the rate has declined sharply during the past quarter of a century.
If planned aggregate expenditure is less than total production
What will be an ideal response?
In the above figure, assume the economy starts out in equilibrium at point d. If the Fed increases the money supply so that the new aggregate demand curve is AD3, then the new short-run equilibrium will be at point
A. a. B. b. C. c. D. i.
The demand for money is likely downward sloping because
A. interest sensitive consumption and business investment are both negatively impacted by increases in the interest rate. B. the government can always borrow what it wants. C. interest sensitive consumption and business investment are both positively impacted by increases in the interest rate. D. the marginal revenue product of labor is decreasing.