The implicit price paid by the government for surplus crops taken as collateral for loans to farmers is called
A. The interest rate.
B. The loan rate.
C. A countercyclical payment.
D. A loan subsidy.
Answer: B
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If the Engel curve for a good is upward sloping, the demand curve for that good must be downward sloping
What will be an ideal response?
Cheap talk
A) is never credible. B) is illegal. C) generally affects the game's payoffs. D) can be credible when both firms have an incentive to be truthful.
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation. b. both the borrower and the lender lose from inflation. c. the borrower benefits from inflation, while the lender loses from inflation. d. the lender benefits from inflation, while the borrower loses from inflation.
At the equilibrium price for gasoline:
a. everyone with the desire and the income to buy gasoline at that price can do so. b. surpluses are inevitable c. quantity demanded exceeds the quantity supplied. d. none of the above