Suppose 100 bushels of X are produced at a target price of $7 per bushel, but consumers will only buy 100 bushels at $3 a bushel. What is the total deficiency payment to farmers?

The central bank which is generally regarded as the most independent in the world because its charter cannot be changed by legislation is the

A) Bank of England. B) Bank of Canada. C) European Central Bank. D) Bank of Japan.

Suppose the marginal propensity to consume is 0.8. A $20 billion increase in government spending shifts the IS curve

A) to the right by $100 billion. B) to the left by $20 billion. C) to the left by $16 billion. D) to the right by $2.5 billion.