Which of the following is not likely to cause a change in the supply of wheat?
a. a government subsidy to farmers who do not grow wheat
b. an increase in the price of soybeans
c. a decrease in the price of fertilizer
d. a fall in the price of wheat
e. producers expect product prices to rise
D
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The financing of U.S. import transactions, ceteris paribus
A) reduces U.S. interest rates. B) increases the amount of foreign currency held by the Fed. C) increases U.S. GDP. D) decreases the amount of foreign currency held by U.S. banks.
Explain the difference between a regressive tax and a progressive tax
What will be an ideal response?
A price ceiling is imposed in a market at $13, well below its equilibrium level. The equilibrium quantity is 27 units if the market was in equilibrium. Which of the following must be true?
a. There is an excess demand at $13. b. There is an excess supply at $13. c. The equilibrium price must be less than $13. d. Quantity supplied is greater than 27 units at $13. e. Quantity demanded is less than 27 units at $13.
A decrease in the price level makes consumers feel wealthier, so they purchase more. This logic helps explain why the aggregate demand curve slopes downward
a. True b. False Indicate whether the statement is true or false