Answer the following questions true (T) or false (F)
1. Expansionary monetary policy actions will result in an increase in net farm income as the demand for farm commodities increase.
2. Contractionary fiscal policy actions will result in a decrease in net farm income as the demand for farm commodities decrease.
3. Expansionary monetary policy actions will lead to a growth in farmland values and farm equity as net farm incomes rise and interest rates fall.
1. TRUE
2. TRUE
3. TRUE
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With real-world examples, explain the various factors that can cause a shift in the supply curve of a commodity
What will be an ideal response?
When a hard frost hits orange groves in Florida, the supply of orange juice ________ and price ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Using Scenario 1, calculate the total cost of pollution when both steel companies are allowed to pollute only one million gallons of thermal water each and the right is not transferable or tradable
What will be an ideal response?
Why do price ceilings tend to cause persistent imbalances in the market?
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.