Basis may decrease if
A. a large capacity train terminal is built by CGB.
B. a drought resulted in a short local crop.
C. a large local ethanol plants closes.
D. All of the above.
Ans: C. a large local ethanol plants closes.
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According to the natural rate hypothesis, in the short run an increase in the inflation rate brings
A) an increase in the natural unemployment rate. B) an increase in the unemployment rate. C) no change in the unemployment rate. D) a decrease in the unemployment rate. E) a decrease in the natural unemployment rate.
If a firm increases its production every month, then its:
a. average fixed cost increases every month. b. average variable cost gets closer to the average total cost every month. c. average variable cost becomes equal to the average total cost. d. average fixed cost gets closer to the average total cost every month.