Suppose the market-clearing price of wheat is $2.50 per bushel. What would happen if wheat farmers persuaded the government to set a legally-mandated price support of $3.75 per bushel?
A) The quantity demanded of wheat would fall.
B) The quantity supplied of wheat would rise.
C) A surplus of wheat would occur.
D) All of the above.
D
Economics
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The Fed decreases the quantity of money to counteract
A) positive net exports. B) a federal budget deficit. C) a rise in the unemployment rate. D) a recessionary ga
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Opponents of rule-determined policies might point out that ________
A) markets self-correct quickly so rules become obsolete B) unforeseen changes in the structure of the economy may make a rule obsolete C) policies that kick in at the wrong time may lead to undesirable results D) all of the above E) none of the above
Economics