When interest rates rise, farm profits
A) Increase because the value of farm assets varies directly with interest rates.
B) Decrease because the value of farm assets varies directly with interest rates.
C) Decrease because interest rates represent a major cost for farm production.
D) Are not affected.
Ans: C) Decrease because interest rates represent a major cost for farm production.
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The ways to address agency costs include all EXCEPT
a. advertising for employee positions in as many outlets as possible b. requiring employees to punch time clocks c. spot checks of the quality of employee work d. replacing closed offices with cubical office spaces
A perfectly competitive firm is a "price maker."
a. True b. False Indicate whether the statement is true or false
All of the following are considered natural resources EXCEPT:
A. a coral reef. B. gold. C. labor. D. a redwood forest.
The new classical interpretation of the economy suggests that
A) output is always above the natural level. B) output is always below the natural level. C) output is always equal to the natural level. D) recessions will not occur.