"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run in the corn market, what is TRUE if the production of ethanol increases?
A) The demand curve for individual corn farmers will shift upward.
B) The price individual corn farmers receive will decrease.
C) The total cost curve for individual corn farmers will shift upward.
D) The marginal cost curve for individual corn farmers will shift downward.
A
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A currency depreciation in the foreign exchange market will:
A. Encourage imports into the country whose currency has depreciated B. Discourage imports into the country whose currency has depreciated C. Discourage exports from the country whose currency has depreciated D. Encourage foreign travel by the citizens of the country whose currency has depreciated
The reason that the Fed does not actively use discount rate policy to control the money supply is because the Fed
A. acts when a majority of member banks agree on policy and the banks rarely agree. B. earns interest on discounting and cannot afford to lose the revenue. C. does not know how banks will respond to discount rate changes. D. has been directed by Congress to set the discount rate at a permanent level.