If the market price for a crop is $4.00 a bushel, and the price support is $3.00, then raising the price support to $3.50
A. will cause the price paid by consumers to rise.
B. will cause the price received by farmers to fall.
C. will cause nothing to happen.
D. will cause the price received by farmers to rise.
Answer: C
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Refer to the above figure. Unexpected expansionary monetary policy has caused the aggregate demand curve to shift to AD2. In the long run
A) real GDP will be Y1, and the price level will be above P2. B) real GDP will be between Y1 and Y2, and the price level will be between P1 and P2. C) real GDP will be Y2, and the price level will be P2. D) real GDP will be Y1, and the price level will be P1.
The figure above shows Ilene's budget line. The price of a can of cat food is $2. Ilene's income per week is
A) $10. B) $40. C) $56. D) $160.
If Sony keeps the price of PlayStation 3 constant in terms of dollars, what is the impact on Sony of a stronger yen?
A) a decline in exports to the United States B) an increase in imports from the United States C) lower profit D) higher profit
Traditionally, the Federal Reserve can give emergency loans only to:
Commercial banks Manufacturing firms Securities firms Investment banks