If the prices received by farmers increased and the prices paid by farmers also increased, the parity ratio:

A. will necessarily be unchanged.
B. may either increase or decrease.
C. will necessarily increase.
D. will necessarily decline.


Answer: B

Economics

You might also like to view...

The German Hyperinflation of the early 1920s was caused by

A) large deficits resulting from the high levels of war spending and falling taxes. B) rising oil prices after World War I caused a severe stagflation and hyperinflation. C) an overly aggressive monetary policy implemented to combat a severe recession. D) the German government raising funds for expenditures by selling bonds to the central bank.

Economics

Antitrust laws in other countries are weak in comparison to U.S. antitrust laws

a. True b. False Indicate whether the statement is true or false

Economics

If aggregate demand keeps increasing while aggregate supply remains unchanged, eventually

a. demand-pull inflation will occur b. cost-push inflation will occur c. demand-push inflation will occur d. cost-pull inflation will occur e. unemployment will occur

Economics

Answer the following statements true (T) or false (F)

1) Operation Twist was aimed at lowering long-term interest rates. 2) Other things equal, an expansionary monetary policy will shift the economy's aggregate demand curve to the right. 3) A restrictive monetary policy may be frustrated if the investment-demand curve shifts to the left. 4) A restrictive monetary policy reduces investment spending and shifts the economy's aggregate demand curve to the right.

Economics