Whenever the market price for crops is below the Commodity Credit Corporation (CCC) loan rate, the government will end up buying surplus crops.
Answer the following statement true (T) or false (F)
True
The Commodity Credit Corporation lends money to farmers at fixed 'loan rates' that are implicit price floors. If the market price falls below the CCC loan rate, the government keeps the crop as full payment of the loan or pays farmers a 'loan deficiency payment.'
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Suppose you are paid a wage of $50 per hour. if your marginal income tax rate is 20%, then for every additional hour you work, your tax wedge is
A) $10. B) $20. C) $25. D) $40.
The U.S. had a low fertility rate in the early nineteenth century
Indicate whether the statement is true or false
In a classical model
A) equilibrium real GDP is demand determined. B) equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand. C) equilibrium real GDP is determined by both aggregate supply and aggregate demand. D) equilibrium real GDP is supply determined.
During a time when the inflation rate is increasing each year for a number of years, are adaptive expectations or rational expectations likely to give the more accurate forecasts? Briefly explain
What will be an ideal response?